In December 2023, the Federal Board of Revenue (FBR) achieved a historic milestone by collecting an impressive Rs1.021 trillion. Even after factoring in refunds, the net collection amounted to a substantial Rs984 billion, marking the first time FBR has surpassed Rs1 trillion in a single month.
Exceeding targets for both the month and the initial six months of the fiscal year, FBR outperformed expectations set with the IMF. The target for the first six months was Rs4.425 trillion, and the actual collection reached Rs4.468 trillion, surpassing the target by Rs43 billion. This demonstrates a significant increase compared to the previous year.
Despite challenges like reduced imports, FBR focused on boosting domestic revenues. The balance between import and domestic taxes shifted, with domestic taxes claiming a larger share, reaching 49% in the initial six months and an impressive 59% in December.
FBR also reduced the share of withholding taxes over the past two years, now standing at 55-58%, with a further decrease to 40% in December 2023. The Chairman of FBR commended the teams for this achievement, recognizing the crucial role played by taxpayers in reaching this milestone.