Federal Board of Revenue (FBR) has etched its name in history by achieving an extraordinary milestone—crossing the Rs. 1 trillion mark in tax collection for a single month. The monumental feat happened in December 2023, where FBR creates history by reaching a remarkable collection of Rs. 1021 billion and achieving a net collection of Rs. 984 billion after adjusting refunds.
FBR Creates History by Surpassing Targets
The FBR not only exceeded its monthly target but also surpassed the set goals for the first six months of the fiscal year. The ambitious target of Rs. 4425 billion, in agreement with the International Monetary Fund (IMF), was surpassed by Rs. 43 billion, with the FBR recording a collection of Rs. 4468 billion. This remarkable performance demonstrates a significant increase from the previous year, where Rs. 3428 billion was collected during the corresponding period.
Despite challenges such as import compression and refunds issued, the FBR has dynamically adjusted its revenue mix. The ratio of import stage and domestic taxes, once 50:50, has transformed to 36:64. The FBR, resilient in the face of import compression, managed to absorb the impact by generating more revenues domestically.
Chairman FBR Extends Appreciation
Notably, the share of direct taxes in the overall revenue mix has seen an upward trend, constituting 49% for the first six months and reaching 59% in December alone. Within direct taxes, the share of withholding taxes has decreased over the past two years, dropping to 40% in December 2023. While it took 50 years to reach a trillion in annual collection in 2007-08, the FBR has now accomplished this milestone in a single month within a span of 15 years.
The Chairman of FBR extended congratulations to the teams of Member (Customs Operations) and Member (IR- Operations) for accomplishing this remarkable feat. He also expressed gratitude to the taxpayers, acknowledging their unwavering support and accurate declarations, which played a crucial role in achieving this milestone.
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