Pakistan has successfully achieved its key tax targets set by the International Monetary Fund (IMF). The tax-to-GDP ratio has reached 10.8%, surpassing this year’s target of 10.6%.
According to the Adviser to the Finance Minister Khurram Shahzad, this is the highest tax-to-GDP ratio recorded in the past four years. The tax target of Rs6,009 billion for the first half of the fiscal year was also achieved by 94%, he added.
In the first half of the fiscal year, from July to December, the Federal Board of Revenue (FBR) collected Rs5,624 billion in taxes, reflecting a 26% increase compared to the same period last year. December’s tax collection stood at Rs1,328 billion, achieving 97% of the target of Rs1,373 billion for the month. Last month alone witnessed a 35% increase in tax collection compared to the same month last year.
Despite a shortfall of Rs385 billion against the initial half-year target, FBR officials noted a significant improvement in revenue performance.
Officials claimed that the IMF has expressed satisfaction with Pakistan’s progress in tax-to-GDP growth. They confirmed that there is no immediate need for additional tax measures or a mini-budget to meet the annual target.
The overall tax collection target for the current fiscal year is set at Rs12,970 billion. To bridge the shortfall, the FBR aims to collect Rs7,346 billion during the second half of the year, from January to June.
Breaking down the revenue figures, income tax collections totalled Rs2,827 billion in the first six months, while sales tax collections amounted to Rs2,105 billion. Customs duty revenues reached Rs617.3 billion, and federal excise duty collections were recorded at Rs346.6 billion. Additionally, tax refunds worth Rs70 billion were issued between July and December, providing relief to taxpayers.
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