FBR Exceeds July Revenue Target with PKR. 659 Bn Collection

Pakistan, August 1, 2024: The Federal Board of Revenue (FBR) has exceeded its target revenue by collecting an impressive Rs 659 bn in July, against the projected target of Rs 656bn.

This year’s growth was 22% higher than last year’s. The surpassed expectations reflect robust economic activity and improved tax compliance across the country.

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After exceeding the July revenue target successfully, FBR is positive for the upcoming year, and the collection is estimated to be up to Rs 2 tr in fiscal year 2025.

To facilitate the exporters, the FBR paid Rs78 billion in refunds in the first month of the current year, compared to Rs49 billion in the same month last year. This is a 59% increase.

Moreover, income tax collection reached Rs284 billion in July 2024, up from Rs236 billion in July last year. This 20% growth is mainly due to a significant increase in income tax rates for both salaried and non-salaried individuals.

Sales tax collection reached Rs256 billion in July 2024, compared to Rs202 billion in the same month last year. This 26% increase is mainly due to the removal of exemptions on several products, including stationery and milk products.

Customs duty collection was Rs82 billion in July 2024, up from Rs73 billion in July last year. This 13% increase is largely because of significant growth in imports of goods during the month.

FED collection increased by 22% to Rs37 billion in July 2024, compared to Rs31 billion in the same month last year. The government raised the FED rate on several products in the budget.

As per the official announcement, FBR had shown a promising start for FY25 regarding revenue collection. It added that the FBR’s performance, despite the current financial and economic difficulties, reflects the dedication of the tax officials to achieving the assigned target for the current financial year.

Stay tuned with RBS for more updates.