KARACHI: Federal Board of Revenue (FBR) Large Taxpayers Office Karachi for the first time crossed one trillion benchmark of half yearly collection by incurring taxes amounting to Rs.1221 billion during July to December 2023.
In the first six months of fiscal year 2023-24, tax collection surpassed the target of Rs.1216 billion and registered a growth of 26.79% over the corresponding period of FY22-23 in which tax collection stood at Rs.963 billion, Commissioner Inland Revenue LTO Karachi, Girdhari Mal informed while briefing the media.
He said that the milestone was achieved despite nominal growth on imports at 2.5 % and as such substantial growth of 47 % has been achieved in domestic taxes.
He expressed optimism that LTO will achieve tax collection of over Rs. 2.5 trillion in the current fiscal year 2023-24 as economic indicators including GDP growth, currency stabilization, foreign trade, current account, revenue generation and inflation expectations were showing improvement along with with boom in stock market.
The indicators suggest that “economic slump is converting into economic recovery,” he noted and vowed that FBR was striving to contribute in government’s efforts for steering the national economy out of economic woes.
He said that H1FY 23-24 tax collection witnessed positive growth in Banking, Cotton Ginning, Electric and Electronics, FMCGs. Insurance, Pharmaceutical, Software and Shipping sectors while Automobile and auto parts, construction and oil exploration sectors remained in negative zone.
Another benchmark of 300 billion was reached in monthly tax collection of December 2023 as LTO generated taxes of Rs.320 b against the assigned target of Rs.316 b, he stated adding that it depicted 39% increase as compared to Rs. 230 billion collection of December 2022.
Refund of Rs.75 b were issued during H1FY23-24 with 103% increase over previous year’s Rs.36 b while volume of Advance taxes increased from Rs. 230 b of H1FY22-23 to Rs.385 b collected in six months of the current fiscal year, he said.
LTO has conducted an in depth analysis of tax at domestic and import stages while collection ratio from direct taxes and non-withholding taxes improved as well, he said.
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