Karachi has emerged as the top contributor to national tax revenues for the fiscal year 2023-24, according to the Federal Board of Revenue’s (FBR) annual report.
Karachi’s Large Tax Office (LTO) collected Rs. 2.522 trillion in taxes. This includes Rs. 1.36 trillion in income tax, Rs. 136.3 million in federal excise duty, and over Rs. 1 trillion in sales tax.
The Lahore LTO secured the second spot, generating over Rs. 1.402 trillion in tax revenues, while the Islamabad LTO ranked third with revenue contributions totaling Rs. 1,164 trillion during the same period.
The new fiscal year 2024-25 doesn’t look as good as the previous one as the tax machinery is struggling to meet its revenue collection targets set for this year. In the latest developments, FBR suffered a massive shortfall in revenue collection during the first six months of FY25.
The period’s shortfall stands at Rs. 386 billion, resulting in a collection much less than the assigned target of Rs. 6,009 billion.
FBR has collected Rs. 5,623 billion in six months of FY25 against the assigned target of Rs. 6,009 billion for this period.
It is pertinent to mention here that government set a lofty tax collection target of Rs. 12,913 billion for FY25, a 40 percent increase from FY24, which now seems like an uphill task.
