FBR
ISLAMABAD: The Federal Board of Revenue (FBR) has etched a historic achievement by surpassing the Rs1 trillion mark in tax collection for December 2023, exceeding the monthly target, on Monday. The FBR disclosed that it collected Rs1,021 billion during December 2023, achieving a net collection of Rs984 billion after adjusting for Rs38 billion in refunds issued that month.
Remarkably, the FBR not only met but exceeded the targets for the first six months of the current fiscal year, set at Rs4,425 billion in agreement with the International Monetary Fund (IMF). The actual collection stood at Rs4,468 billion, surpassing the target by Rs43 billion.
Comparatively, in the corresponding six months of the previous year, the FBR collected Rs3,428 billion, marking an increase of over Rs1 trillion. This achievement is notable even in the face of Rs230 billion in refunds issued, a contrast to Rs177 billion during the same period in the prior year, and sustained import compression affecting revenue collected at the import stage.
The revenue mix has witnessed a shift, with domestic taxes contributing more significantly. Formerly at a 50:50 ratio with import-stage revenues, the current mix stands at 36:64, with the FBR compensating for import compression by enhancing domestic revenue.
Direct taxes now account for 49% of the total in the first six months, with December alone registering a 59% share. This reflects a 41% increase in the direct tax share over the corresponding period in the previous year. Over the past two years, the FBR has reduced the share of withholding taxes from 70% to 55-58%, and in December 2023, the withholding tax share dropped to 40%.
The milestone of collecting Rs1 trillion annually was reached in 2007-08, taking 50 years to achieve. Remarkably, in just 15 years, the FBR accomplished this feat in a single month, a testament to the dedication and hard work of field formations and top brass. FBR Chairman Malik Amjed Zubair Tiwana expressed congratulations and gratitude to the teams and taxpayers for their indispensable support in achieving this remarkable milestone.
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