- Board exceeds targets set for month, first six months of FY 2023-24
- Proportion of direct taxes surged to 49pc in six months, 59pc in December
ISLAMABAD: The Federal Board of Revenue (FBR) has etched its name in history by collecting a remarkable Rs1.021 trillion in December 2023.
After adjusting refunds of Rs38 billion issued during the month, the net collection stood at an impressive Rs984 billion. This monumental achievement marks the first time in history that the FBR has surpassed the Rs1 trillion mark in a single month.
As per the details, exceeding the targets set for the month as well as for the first six months of the current financial year, the FBR outperformed expectations. The target set for the initial six months was Rs4.425 trillion, in line with agreements made with the IMF. Remarkably, the actual collection amounted to Rs4.468 trillion, surpassing the target by Rs43 billion. Comparing this to the corresponding period of the previous year, which saw a collection of Rs3.428 trillion, reflects an increase of more than 1 trillion.
Despite challenges such as import compression leading to a contraction in imports, the FBR has managed to navigate this obstacle by focusing on boosting domestic revenues. Formerly balanced at a 50:50 ratio between import stage and domestic taxes, the current mix stands at 36:64, demonstrating the FBR’s adaptability in absorbing the impact of import compression by generating increased revenues domestically.
Moreover, the ratio of direct and indirect taxes has undergone a transformation, with direct taxes claiming a larger share. The proportion of direct taxes surged to 49% in the initial six months, with December witnessing a remarkable 59%. Notably, within direct taxes, the FBR has steadily reduced the share of withholding taxes over the past two years, now standing at 55-58%, with December 2023 reflecting a decrease to as low as 40%.
Chairman FBR extends his congratulations to Member (Customs Operations), Member (IR- Operations), and their teams for this remarkable achievement. He acknowledges the vital role played by taxpayers whose steadfast support and accurate declarations were pivotal in accomplishing this milestone.
