FBR revenue collection increases 33% in March, nearing Rs879bn target

Tax collection by the Federal Board of Revenue (FBR) in March nearly reached its goal, falling short by Rs1 billion, according to provisional data released on Saturday.

The collected amount for March was Rs878 billion, slightly below the target of Rs879 billion. This represents a 32.62% increase from the Rs662 billion collected in the same month the previous year.

Adjustments in the books are expected to refine these numbers further. Additionally, with the data covering up to March 30, the FBR anticipates additional revenue on the last day of the month.

In the fiscal year to date, from July to March, the FBR has gathered Rs6.709 trillion, surpassing its target by Rs1 billion. This performance offset the deficits recorded in January and February, attributing to a robust collection in March 2024.

For the fiscal year 2024, the government aims to collect Rs9.415 trillion, marking a 30% increase from the previous year’s revised figure of Rs7.2 trillion.

Notably, revenue from imports is on the rise, contributing to this growth. However, details on sales tax refunds for the first nine months have not been disclosed.

Efforts to widen Pakistan’s tax base include the implementation of a digital system targeting professional service providers, including lawyers, doctors, and engineers.

Currently, the country has approximately 2.3 million taxpayers, with corporate tax filers constituting 0.8% of commercial and industrial electricity consumers and GST-registered entities accounting for 13% of the taxpayer population.

Finance Minister Muhammad Aurangzeb has prioritized digitalization to curb financial leakages and improve efficiency.

Despite the existence of the FBR Track and Trace system for several years, it has yet to yield the expected outcomes.

Addressing the Rs1.7 trillion litigation backlog in tribunals remains a significant challenge, with previous finance ministers struggling to reduce this figure.