The Federal Board of Return (FBR) declared a record collection of tax revenue of 872 billion rupees in January, marking an increase of 29% compared to the same month of last year, when 677 billion rupees were collected.
This achievement occurs despite a 10% reduction in interest rates and a 22% drop in inflation compared to the previous year.
The FBR has also highlighted significant growth in the various tax categories, with income tax revenues increasing by 28%, income from the sales tax increasing by 29% and the collection of rights ‘Federal excise increased by 34%.
Customs duties have also experienced a substantial boost, increasing by 30%, signaling a rebirth of economic activity and growth in the country.
This marks the first time this year that customs duties have recorded such a significant increase.
The high performance of income in January reflects the efforts of the FBR to strengthen tax collection and the overall recovery of the economy.
However, it reflects a deficit of 85 billion rupees for the total tax perception of 872 billion rupees, failed the target of 957 billion rupees.
In December 2024, the tax department collected Rs 1,326 billion, missing the objective of Rs 1,373 billion for this month.
The International Monetary Fund (IMF) assesses the tax collection on a quarterly rather than monthly basis, with the objective of the period from January to March 2025 set at Rs3 150 billion. They expect the tax collections to improve in March as economic activity increases.
