FBR exceeds May revenue target by Rs15.21bn

The Federal Board of Revenue (FBR) surpassed its May revenue target by Rs15.21 billion, mainly due to higher income tax and import duties collections, according to provisional figures released on Friday.

May’s revenue collection stood at Rs760.21 billion, against a target of Rs745 billion, marking a 32.8% increase compared to Rs572.29 billion in the same month last year. 

The FBR reduced the tax collection target by Rs66 billion for May and Rs8 billion for April, adjusting for tax amounts from last year’s budgetary measures blocked in courts during FY24.

From July to May of FY24, the FBR collected Rs8.122 trillion, slightly below the target of Rs8.162 trillion, but showing a 30.8% increase compared to Rs6.208 trillion in the corresponding period last year.

Revenue collection fell short of budgetary targets in February, January, April, and May. 

To meet the FY24 target of Rs9.415 trillion, the FBR needs to raise Rs1.253 trillion in June, up from the projected Rs1.178 trillion, including a Rs75 billion backlog.

The government paid Rs438.110 billion in refunds/rebates to taxpayers during the first 11 months of FY24, up from Rs315.223 billion in the same period last year, a 38.98% increase.

Income tax collection rose 40.6% to Rs3.857 trillion in 11MFY24 from Rs2.743 trillion in the same period last year, with May’s income tax collections up by 48%.

Sales tax collection reached Rs2.767 trillion in 11MFY24, a 19.6% increase from Rs2.314 trillion over the same period last year. May’s sales tax collection saw a 20% increase but remained below projected targets despite high inflation. 

Federal excise duty collection increased by 54% to Rs503.034 billion in 11MFY24, compared to Rs326.496 billion over the same period last year, driven by new duties on several products introduced last year.