FBR Achieves Milestone, Crosses Rs. 1 Trillion In Tax Collection For A Single Month
The Federal Board of Revenue (FBR) achieved a historic milestone by collecting Rs. 1.021 trillion in a single month (December 2023) for the first time in its history. After adjusting for refunds of Rs. 38 billion issued during the month, the net collection reached Rs. 984 billion.
The official statement from the FBR revealed that both the monthly and six-month targets for the current financial year were surpassed. The target for the first six months, set at Rs. 4,425 billion in agreement with the International Monetary Fund (IMF), was exceeded by Rs. 43 billion, reaching a total collection of Rs. 4,468 billion. In comparison, the FBR collected Rs. 3,428 billion in the corresponding six months of the previous year, marking an increase of over 1 trillion.
Despite the issuance of refunds totaling Rs. 230 billion, an increase from Rs. 177 billion in the corresponding period of the previous year, and ongoing import compression affecting revenue collection at the import stage, the FBR absorbed the impact by generating more revenues domestically.
The ratio of direct to indirect taxes has shifted, with direct taxes accounting for 49% in the first six months. In December alone, the share of direct taxes reached 59%, reflecting a 41% increase in the first six months compared to the corresponding period of the previous year.
Within direct taxes, the FBR has reduced the share of withholding taxes from 70% to 55-58% over the past two years. In December 2023, the share of withholding taxes dropped to as low as 40%.
It is noteworthy that the FBR achieved an annual collection of 1 trillion back in 2007-08, taking 50 years to reach this milestone. However, in just 15 years, the FBR accomplished the feat of collecting 1 trillion in a single month, attributed to the dedicated efforts and hard work of field formations and FBR’s top leadership. The Chairman of FBR expressed gratitude to the teams involved and acknowledged the continuous support of taxpayers for this achievement.