The Federal Board of Revenue (FBR) reported a surprising tax collection of Rs2.56 trillion in the first quarter of FY 2024-25, driven by a notable rise in tax payments with returns.
Despite this, the FBR was still Rs93 billion short of its target but fared better than the anticipated Rs170-200 billion shortfall.
Penalties on non-filers, restricting their ability to purchase assets or operate bank accounts, led to an extra Rs46 billion in income tax payments.
While Rs96 billion was collected from 3.7 million tax returns, FBR also blocked around Rs30 billion in sales tax refunds to exporters.
Chairman Rashid Langrial highlighted that removing the non-filer category compelled more people to file tax returns, but retailers remain largely untargeted.
The FBR saw an 86% increase in tax returns compared to the previous year. While Rs2.652 trillion was the IMF target, the FBR’s Rs2.56 trillion collection still fell short.
For the current fiscal year, the IMF set a Rs12.97 trillion tax target, resulting in new taxes, mainly affecting salaried individuals and consumables like medical tests and milk products.
Income tax collections rose 31% to Rs1.225 trillion, and sales tax increased 24% to Rs904 billion, although both missed targets. Federal excise duty and customs duties also increased but didn’t meet their respective goals.
