Federal Board of Revenue Achieves Over 1 Trillion Gross Revenue in December 2023

In a historic achievement, the Federal Board of Revenue (FBR) set a record by collecting an impressive Rs. 1021 Billion in gross revenue in December 2023. After adjusting refunds totaling Rs. 38 billion issued during the month, the net collection reached an outstanding Rs. 984 billion. This marks the first time the FBR has crossed the 1 trillion mark in a single month, exceeding both monthly and six-month targets for the current financial year.

The target for the first six months, set at Rs. 4425 billion as agreed with the International Monetary Fund (IMF), was surpassed by Rs. 43 billion, reaching a total collection of Rs. 4468 billion. This signifies a substantial increase compared to the corresponding period in the previous year, where the FBR collected Rs. 3428 billion. Despite issuing refunds of Rs. 230 billion, an increase from Rs. 177 billion in the same period last year, and facing continuous import compression, the FBR has displayed resilience in revenue collection.

Import contraction remains a challenge affecting revenue collected at the import stage. The revenue mix, once evenly distributed between import and domestic taxes at 50:50, has shifted to 36:64. The FBR has successfully absorbed the impact of import compression by generating more revenue domestically. The ratio of direct to indirect taxes has also changed, with direct taxes accounting for 49% in the first six months and a remarkable 59% in December alone. This marks a 41% increase in the share of direct taxes for the first six months compared to the previous year. Notably, within direct taxes, the FBR has reduced the share of withholding taxes from 70% to 55-58% over the past two years, reaching as low as 40% in December 2023.

It's noteworthy that the FBR achieved an annual collection of 1 trillion back in 2007-08 after 50 years of its establishment. In a remarkable feat, this milestone has now been accomplished in a single month within just 15 years, showcasing the relentless efforts, dedication, and hard work of the field formations and top brass of the FBR.

Chairman FBR extends congratulations to Member (Customs Operations), Member (IR- Operations), and their teams for this extraordinary achievement. He also expresses gratitude to the taxpayers, emphasizing that without their continuous support and accurate declarations, this remarkable target could not have been accomplished.