The Federal Board of Revenue (FBR) has recorded a remarkable achievement, surpassing the Rs 1 trillion mark in gross revenue within a single month for the first time in its history during December 2023. Tax collectors announced a staggering Rs 1,021 billion in revenue, and despite issuing Rs 38 billion in refunds, they netted an impressive Rs 984 billion, effectively exceeding their monthly goal. Moreover, the FBR defied expectations by outperforming the six-month target of Rs 4,425 billion, set in agreement with the IMF, by a margin of Rs 43 billion with a final tally of Rs 4,468 billion, marking a substantial increase from the previous year’s Rs 3,428 billion.
The success comes amidst heightened tax refund payouts of Rs 230 billion during the first half-year, which is significantly more than the Rs 177 billion in the prior year. The commendable performance is especially notable given the challenges posed by import compression affecting revenue at that stage. Still, the FBR’s strategic focus on domestic revenue uplifted the balance; shifting from a 50:50 to a 36:64 ratio between import and domestic taxes. Notably, direct taxes now comprise 49% of the total revenue for the six months, a marked growth from previous figures.
December alone saw direct taxes accounting for 59% of revenue, witnessing a 41% surge compared to the same period in the prior year. The FBR also successfully adjusted its dependency on withholding taxes, decreasing their proportion from 70% to a range of 55-58% in two years, and to a notable low of 40% in December 2023.
Drawing a parallel, the FBR took 50 years to amass Rs 1 trillion annually back in 2007-08; a benchmark now attained in a month, showcasing a rapid fiscal expansion in just 15 years. The Chairman of the FBR lauded the unwavering commitment and diligence of the Customs Operations and IR-Operations departments, alongside the taxpayers, whose accurate declarations made this landmark achievement possible.
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