Islamabad, Sep 2: The first two months of 2024–25 had a shortfall in tax collection for the Federal Board of Revenue (FBR) of Rs. 98 billion, with net collection of Rs. 1,456 billion compared to the target of Rs. 1,554 billion for the same time.
The FBR reported on Sunday that it has received gross receipts for the months of July and August 2024 totaling Rs. 1,588 billion. In order to help the exporters with their liquidity issues, refunds totaling Rs. 132 billion—a 44% increase over previous year—were given to them in addition to the Rs. 1,456 billion in net revenue that FBR collected against the objective of Rs. 1,554 billion.
In July and August of 2024, the FBR collected Rs. 437 billion in domestic income tax, compared to Rs. 593 billion in the same period the previous year, indicating a 36% increase. The domestic sales tax saw a robust 40 percent year-over-year gain, bringing in about Rs. 314 billion. The Federal Excise Duty (FED) collected was around Rs. 86 billion, indicating a 13 percent rise from the previous year. Consequently, the total amount of domestic taxes collected has increased by nearly 35% over time.
The FBR has chosen an inflation rate of 11% for the two months of July and August in 2024 as opposed to 28% for the same period in 2023.
According to the data, net income tax collection for July and August of 2024 was Rs 616 billion, as opposed to Rs 489 billion during the same period in 2023.
In July and August of 2024, net sales tax collections totaled Rs. 572 billion, compared to Rs. 473 billion at the same time in 2023.
During July and August of 2024, the net amount of customs duty collected was Rs 172 billion, compared to Rs 166 billion during the same period the previous year.
On the other hand, because of ongoing import constriction, the same impetus could not be sustained. August 2024 imports have decreased by 2.2% in US dollars compared to August 2023. In a similar vein, August 2024 imports in Pakistani Rupees saw a 7% decrease from August of the previous year.
Additionally, the import mix has changed as a result of a considerable decrease in the import of high-duty commodities like cars and home appliances as well as miscellaneous consumer goods like clothing, textiles, and footwear. Both the collection of other import-related taxes and customs duties have been impacted by this development. FBR’s overall gain in net collection reported a 21% increase over collection of the previous year, despite a little increase of 4% in customs duty collection.
