PTBP Web Desk
The Federal Board of Revenue (FBR) has released its comprehensive report for the fiscal year 2023-24, detailing the tax collection performance across various sectors in Pakistan. The standout performer in this fiscal period was the corporate sector, which contributed an impressive Rs 3,061 billion in income tax, underlining the sector’s significant role in the national economy.
The FBR’s report provides a detailed breakdown of tax receipts, highlighting the contributions from different segments:
Corporate Tax: The corporate sector led with Rs 3,061 billion, representing a substantial portion of the direct tax collection.
Individuals: Tax revenue from individuals amounted to Rs 1,119 billion, showing a healthy increase in personal income tax compliance.
Association of Persons (AOPs): AOPs added Rs 353 billion to the tax kitty, demonstrating the broadening tax base across different organizational structures.
This distribution of tax contributions signifies the FBR’s success in promoting balanced tax collection and enhancing overall tax compliance within the country.
Direct Taxes Overall: Achieved 121.8% of the target, showcasing the effective enforcement and collection strategies by the FBR.
Income Tax: With collections at 121.2% of the target, income tax from all sources, including corporate and individual, has been a major driver of revenue.
Capital Value Tax (CVT): This category surpassed its target by 125.2%, indicating a successful expansion of the tax base in this area.
A particularly commendable performance was observed in the Workers Welfare Fund (WWF) and Workers’ Profit Participation Fund (WPPF), which achieved 196.8% of their target. This suggests an improved mechanism for tapping into these specific revenue streams, contributing significantly to the welfare of workers.
Indirect Taxes and Excise Duties
While indirect taxes like sales tax and customs duties did not meet their targets, they still played a crucial role:
Sales Tax: Managed 85.6% of its target, indicating room for improvement in this sector.
Customs: Reached 83.4% of the planned collection, yet still contributed notably to the national revenue.
Federal Excise Duty (FED): Performed well at 96.2% of the target, demonstrating stability and efficiency in excise collections despite various economic challenges.
The report also clarified the handling of special customs duties, particularly the Export Development Surcharge (EDS). In FY 2023-24, Customs Duty figures included an EDS amounting to nearly Rs 21.3 billion. This was initially reconciled under the account head B-02203 with the Accountant General of Pakistan Revenue (AGPR). However, legislative changes in the Finance Act 2022 directed that EDS receipts should now directly go to the Export Development Fund (EDF) account, leading to some discrepancies in reconciliation between FBR and AGPR. This issue is currently under discussion, as per directives from the Finance Division.
