FBR collected Rs4.44 trillion for July-Dec 1HFY

The Federal Board of Revenue (FBR) collected Rs4.440 trillion for July-Dec, an increase of Rs1.15 trillion or 35% during the same period of the previous fiscal year.

Pakistan’s tax man collected more than Rs4.44 trillion in taxes during the first half of this fiscal year. The IMF had set the Rs4.425 trillion indicative tax collection target for the July-December period of this fiscal year.

What FBR achieved in July-Dec 2023

The FBR collected Rs2.13 trillion in Income tax showing an increase of Rs730 billion , Rs1.5 trillion in Sales tax showing an increase of Rs250 billion , Rs265 billion in federal excise duty (FED), Rs540 billion in customs duty in first half of fiscal year.

What FBR is going to do

Pakistan has very low tax-to-GDP ratio which is 10.4%. The FBR chairman reiterated that over 1.5 million new taxpayers would be added to the tax base of the country. In the tax year 2022, about 5.3 million individuals and companies had filed their annual income tax returns.

FBR observed rampant tax evasion, an alarmingly low tax-to-GDP ratio, an inadequately low number of tax filers are resulting in insufficient funding for critical public services and vital socio-economic development initiatives.

The FBR chairman said that under the law, non-filers of income tax returns had the option until December 28th to submit their statements, and now it is time to take action against them which includes disconnecting the SIM cards, electricity, and gas connections of those who are legally required to file their returns but do not fulfil their statutory obligation.