Islamabad: The Federal Board of Revenue (FBR) has revealed a total revenue shortfall of Rs84 billion during the last month (January 2025), while the FBR’s revenue shortfall during the first seven months (July to January) of the current fiscal year 2024-25 has reached Rs468 billion.
According to the details, the Federal Board of Revenue has received interim tax collections of Rs872 billion last month, which is 29 percent more than the same period of the previous fiscal year, but is Rs84 billion less than the tax collection target of Rs956 billion set for January 2025.
On the other hand, according to interim data released by the Ministry of Finance late last night, a record revenue of Rs872 billion has been collected in January. The revenue collected in January has increased by 29 percent compared to the previous year. The volume of revenue collected in January last year was Rs677 billion.
According to the Ministry of Finance, despite a 10 percent decrease in interest rates and a 22 percent decrease in inflation compared to the previous year, revenue collection has increased by 29 percent. In the month of January, income tax revenue has increased by 28 percent, sales tax revenue by 29 percent, federal excise duty collection by 34 percent and customs duties by 30 percent.
The revenue collected in January 2025 is one-third of the total revenue target for the third quarter, and the tax authorities are determined to achieve the target assigned for this quarter.
The significant increase in customs duties collection for the first time this year reflects the revival and growth of economic activities in the country. According to the Ministry of Finance, tax revenues in the first 7 months of the current fiscal year have increased by 26 percent compared to the same period last year. Despite economic challenges, the overall increase in revenue collection of 26 percent is welcome.
According to the Ministry of Finance, the significant increase in tax GDP ratio due to effective increase in tax collection after deducting the effect of inflation and economic slowdown indicates progress towards solving the country’s long-standing problems.
