FBR exceeds revenue target for FY24

ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs9.306 trillion in fiscal year 2023-24 against the target of Rs 9.252 trillion, showing an increase of Rs54 billion in the yearly revenue target.

The revenue is expected to further increase after reconciliation of figures, said a FBR news release issued here on Sunday.

The growth in revenue collection is 30 per cent as compared to the last year. This was possible due to historic collection throughout the current fiscal year.

It is a striking fact that FBR has added Rs2.142 trillion during the year as compared to the last year collection of Rs7.164 trillion and Rs1.183 trillion in the month of June 2024 alone.

The target was achieved despite the fact that the imports were further compressed from $55 billion to $53 billion whereby all the shortfall was to be recovered from domestic taxes.

In addition to exceeding the annual target, the Tax System of Pakistan saw significant structural improvements which were direct result of the interest of the prime minister and finance minister.

This is a direct consequence of policy shift with increased focus on domestic resource mobilization, more direct taxation from the rich and affluent and facilitating businesses and exporters by prompt issuance of refunds:

• Under the prime minister’s directives, the FBR disbursed refunds amounting to Rs469 billion during the FY 2023-24 as compared to Rs331 billion during the FY 2022-23 which is 42pc more than last year.
• Due to focus on direct taxes of the government, the revenue collection target was achieved mainly due to growth in direct taxes which led the way by contributing 47pc to the revenue collection.
• The domestic taxes also improved significantly and overall, FBR collected Rs6.128 trillion in domestic taxes and Rs3.178 trillion in import taxes thereby depicting a growth of 37pc in domestic taxes and 18pc in imports despite import compression from $55 billion last year to $53 billion during the current year.
• The composition of domestic taxes in total revenue collection is 65pc which used to be less than 50pc two years ago.

For the FY 2023-24, FBR collected income tax amounting to Rs4.528 trillion as compared to Rs3.270 trillion during the same period last year, depicting an increase of 38.4pc.

Similarly, under the head sales tax Rs3.098 trillion was collected as compared to Rs2.593 trillion and under the head Federal Excise Duty (FED) Rs576 billion was collected as compared to Rs 370 billion.

The revenue collection under the head of Customs Duty was Rs 1,104 billion as compared to Rs 931 billion last year, press release added.

In spite of all odds and issues faced by the organization as a whole, the officers and officials of FBR have remained dedicated and committed to their primary role i.e. achievement of the assigned revenue targets under all circumstances.

The economic growth of Pakistan is intrinsically linked with the achievement of revenue collection targets, and the employees of FBR are fully determined and ready to cope with the challenges and depict further wins in the years to come.

It is also reiterated that for the assigned revenue collection target for the FY 2024-25 the team FBR is ready to deliver and put in their best efforts to achieve it and serve the nation, it added.