Federal Board of Revenue (FBR) has announced a significant increase in tax revenue for the first half of the current fiscal year, collecting 26% more than last year.
Despite missing the set target, the growth has provided relief from introducing any mini-budget under International Monetary Fund (IMF) pressure.
Between July and December, the FBR collected Rs5,624 billion in taxes, falling short of the Rs6,009 billion target by Rs385 billion. December alone saw a 35% year-on-year growth in tax revenue, with collections reaching Rs1,328 billion against a target of Rs1,373 billion.
Additionally, Rs70 billion in tax refunds were issued during the first half of the fiscal year. The annual tax collection target stands at Rs12,970 billion, with Rs7,346 billion to be raised in the second half to meet this goal.
FBR officials attribute the improved revenue to administrative reforms and financial discipline, and further enhancements in tax collection are under consideration.
The increased December revenue is also expected to offset the need for additional tax measures in the near term.
Key figures include:
Income Tax: Rs2,827 billion collected.
Sales Tax: Rs2,105 billion recorded.
Customs Duty: Rs617.3 billion collected.
Federal Excise Duty: Rs346.6 billion generated.
