Islamabad, Jan 9: The corporate sector contributed Rs3. 06 trillion in income tax during fiscal year 2023-24, according to a report issued by the Federal Board of Revenue (FBR). The FBR report revealed that corporate tax receipts led the way, followed by Rs1
In the fiscal year 2023-24 (FY24), Pakistan’s corporate sector achieved a significant milestone by contributing a record Rs. 3.061 trillion in income tax, according to the Federal Board of Revenue (FBR).
This substantial contribution underscores the sector’s pivotal role in bolstering the nation’s economy and funding public services.
The FBR’s data reveals that the corporate sector was the largest tax contributor during this period. Individuals followed with payments totaling Rs. 1.119 trillion, and associations of persons (AOPs) contributed Rs. 353 billion. These figures highlight the diverse sources of tax revenue essential for Pakistan’s fiscal health.
Direct taxes exceeded expectations, achieving 121.8% of the revised target. Income tax collections reached 121.2% of the target, while capital value tax (CVT) collections stood at 125.2%. Additionally, collections for the Workers Welfare Fund (WWF) and Workers Profit Participation Fund (WPPF) were particularly noteworthy, reaching 196.8% of the target. These funds play a crucial role in supporting labor welfare initiatives across the country.
However, not all tax categories met their targets. Sales taxes collections fell short, achieving only 85.6% of the target, and customs duties reached 83.4%. The Federal Excise Duty (FED) collections performed steadily, reaching 96.2% of the target, showcasing resilience amidst challenging circumstances.
The FBR’s report also highlighted challenges in reconciling customs duty figures due to amendments in the Export Development Fund (EDF) Act 1999. This ambiguity has resulted in ongoing correspondence between the FBR and the Accountant General of Pakistan Revenue (AGPR).
This record-breaking contribution by the corporate sector reflects the effectiveness of the FBR’s efforts to enhance tax compliance and broaden the taxes base. It also underscores the importance of continued collaboration between the government and the corporate sector to ensure sustainable economic growth and fiscal stability.
