The Federal Board of Revenue (FBR) recorded an increase in tax collection during January but failed to meet the assigned target.
According to the FBR, total tax collection in January stood at Rs1,015 billion, showing a 16 per cent increase compared with the same period last year. In January last year, tax collection amounted to Rs873 billion.
Meanwhile, sources in Islamabad said the tax collection target for the month was fixed at Rs1,031 billion. However, collections fell short by Rs16 billion.
Data showed that compared with January last year, tax collection this year was higher by Rs242 billion, reflecting improvement in the tax net and overall recovery.
The FBR said January’s collection remained 10 to 11 per cent higher than the average collection of the past six months. Income tax collection rose from Rs381 billion to Rs483 billion. During the first seven months of the current fiscal year, total tax collection reached Rs7,176 billion, compared with Rs6,490 billion during the same period last year.
Sales tax collection in January stood at Rs360 billion, marking a 12 per cent increase from Rs322 billion last year. This trend reflects the recovery of large-scale industries and is considered a positive and encouraging development. A significant rise was also recorded in direct taxes during January, with the improvement attributed to effective enforcement measures.
During the first seven months of the current fiscal year, the tax shortfall reached Rs345 billion. In the first six months, tax collection declined by Rs329 billion. However, improvement in revenues is expected in the coming months due to the recovery of super tax.
