The Large Taxpayers Office (LTO) Karachi has posted a strong performance in tax revenue collection for the period from July 24, 2024, to May 25, 2025, reaching a record Rs 2.807 trillion, an increase of 11.6% compared to Rs 2.515 trillion collected during the previous fiscal year.
Income tax was the largest contributor to this growth, with Rs 1.510 trillion collected in FY2024-25, marking a substantial rise of 28.1% from the previous year’s Rs 1.179 trillion. This growth highlights improved compliance and more effective tax recovery strategies.
Sales tax also showed a positive trend, with Rs 1.185 trillion collected in FY2024-25, up 19.2% from Rs 994.52 billion in FY2023-24. Federal Excise Duty (FED) recorded the highest growth among all tax streams, jumping 58% from Rs 121.85 billion in FY2023-24 to Rs 192.49 billion in FY2024-25.
Monthly figures for May 2025 reflect continued strong performance, with total revenue collection reaching Rs 248.63 billion, a 24.7% increase over May 2024’s Rs 199.43 billion.
Income tax collection for May grew by 22.1%, while sales tax increased by 17.6%. FED collection for May 2025 saw a dramatic rise of 88.3%, reaching Rs 20.83 billion, compared to Rs 11.06 billion in May 2024.
Tax refunds for the period saw a slight decrease, from Rs 82.51 billion in FY2023-24 to Rs 81.17 billion in FY2024-25, reflecting more efficient management of refunds. However, refunds for May 2025 dropped by 13%, from Rs 5.37 billion to Rs 4.72 billion.
For the period from July 2024 to May 2025, income tax accounted for 53.8% of total revenue, followed by sales tax at 42.2% and FED at 6.9%. The continued strong performance highlights the LTO Karachi’s critical role in the Federal Board of Revenue’s overall tax collection efforts.
