The Federal Board of Revenue (FBR) has reported gross revenues of Rs1,588 billion for the first two months of the fiscal year 2024-25. This surpasses the target of Rs1,554 billion, with net revenue totaling Rs1,456 billion. Refunds amounting to Rs132 billion, 44% higher than the previous year, were issued to exporters to address liquidity issues.
The FBR collected Rs593 billion in domestic income tax, up 36% from Rs437 billion in July-August 2023. Domestic sales tax revenue grew by 40%, reaching nearly Rs314 billion, while federal excise duty collection increased by 13% to Rs86 billion. Overall, domestic tax collections saw a cumulative growth of around 35%.
In terms of imports, there was a 2.2% decrease in dollar terms and a 7% decline in rupee terms in August 2024 compared to August 2023. Notably, imports of high-duty items such as vehicles and home appliances, as well as various consumer goods, have significantly dropped, altering the import mix.
This shift has affected customs duties and other import-related taxes. Despite a 4% rise in customs duties, the FBR’s net collection growth stands at 21% compared to the previous year. The FBR anticipates meeting its first-quarter revenue targets, with expectations for improved economic activity and imports in September due to recent government interventions and a lower policy rate.
