ISLAMABAD WEB DESK: The Federal Board of Revenue (FBR) has reported a commendable 97% achievement of its tax collection target for December 2024. The department collected Rs. 1,328 billion, slightly shy of the Rs. 1,370 billion goal.
December’s collection marked a significant 35% growth compared to November, showcasing improved efficiency and revenue generation. Even more impressive was the 56% surge compared to December of the previous fiscal year, reflecting strong progress.
However, the broader picture for the first half of the financial year reveals a shortfall. The FBR managed to collect Rs. 5,624 billion in taxes against a target of Rs. 6,009 billion, falling short by Rs. 385 billion.
LTO Karachi Sets New Tax Collection Record
A major contributor to this performance was the Large Taxpayer Office (LTO) Karachi, which achieved a record-breaking 20% increase in tax collection during the first five months of the 2024-25 fiscal year. The office collected Rs. 1,110 billion, a significant rise from Rs. 924 billion in the same period of the previous year.
LTO Karachi collected a total of Rs. 542 billion in direct taxes, up from Rs. 451 billion the previous year, reflecting a 20% growth. Meanwhile, the office issued Rs. 47 billion in refunds over the same period.
Indirect and sales tax collection also witnessed an 18% increase, reaching Rs. 494 billion, compared to Rs. 420 billion in the previous year. Local transactions played a key role, with sales tax collection seeing a 30% jump to Rs. 203 billion. However, challenges persist in import-related sales tax collection due to a decline in import bills, according to FBR sources.
Despite the shortfall in overall targets, the significant strides in tax collection point to sustained efforts and improved strategies by the FBR and its regional offices.