Karachi has once again emerged as the highest tax-contributing city in Pakistan, as revealed by the Federal Board of Revenue’s (FBR) annual report for the fiscal year 2023-24. The report underscores Karachi’s crucial role in supporting the country’s economy through its substantial tax revenues.
The city’s Large Tax Office (LTO) alone collected an impressive Rs2,522 billion. This amount includes Rs1,360 billion from income tax and Rs1,000 billion from sales tax, making Karachi a significant player in the national tax framework.
Lahore and Islamabad followed in terms of contributions, with Lahore bringing in Rs1,402 billion and Islamabad contributing Rs1,164 billion. Together, these three cities form the backbone of Pakistan’s tax base, playing a critical role in funding the nation’s development and services.
The FBR report highlights how these contributions are essential for sustaining Pakistan’s economy, as urban centers like Karachi, Lahore, and Islamabad drive the majority of tax revenues. It also underscores the importance of expanding the tax net and fostering compliance to further strengthen the country’s fiscal stability.
