The corporate sector contributed Rs3.06 trillion in income tax during fiscal year 2023-24, according to a report issued by the Federal Board of Revenue (FBR).
The FBR report revealed that corporate tax receipts led the way, followed by Rs1.12 trillion from individual taxpayers and Rs353 billion from associations of persons (AOPs).
Direct taxes exceeded the revised target, achieving 121.8% of projections. Income tax collections accounted for 121.2% of the target, while Capital Value Tax (CVT) outperformed expectations, reaching 125.2%.
Collections from Workers Welfare Fund (WWF) and Workers Profit Participation Fund (WPPF) stood out, achieving 196.8% of the target.
Sales tax collections reached 85.6% of the target, and Customs Duty achieved 83.4%. Federal Excise Duty (FED) collections stood at 96.2%, reflecting steady performance in challenging conditions.
The report highlighted that Rs21.3 billion of Customs Duty includes “Special Customs Duty,” levied as an Export Development Surcharge (EDS) under Section 11 of the Finance Act 1991. Subsequent amendments to the Export Development Fund (EDF) Act 1999 mandated that EDS collections are transferred directly by the State Bank of Pakistan (SBP) to the EDF Account, bypassing reconciliation with the Accountant General of Pakistan Revenue (AGPR).
The FBR acknowledged discrepancies in Export Development Surcharge figures between FBR and AGPR, noting that the Finance Division is addressing the matter through correspondence.
The FBR maintained that despite shortfalls in certain tax instruments, the overall performance highlights progress in revenue mobilisation, contributing to fiscal sustainability and economic growth.
