Pakistan's tax collection in December close to target

Pakistan's tax collection authority — the Federal Board of Revenue of Pakistan (FBR) — has achieved 97% of its tax collection target for December, amounting to PKR 1,328 billion.

Despite falling short of its target by PKR 42 billion, the FBR's tax collection in December demonstrated a substantial 35% increase compared to the same month last year and 56% compared to November.

During the first half of fiscal year 2024-25 (FY25), the FBR's tax collection reached PKR 5,624 billion, missing the target of PKR 6,009 billion, resulting in a shortfall of PKR 385 billion.

The tax authority’s target for FY25, without budgetary measures, is projected at PKR 11,174 billion, representing a 20.8% increase from the previous fiscal year's expected revenue.

The FBR attributes the significant increase in tax collection to its efforts to broaden the tax base and enhance tax compliance.

Despite the shortfall, the FBR remains optimistic about achieving its revenue target for FY25, committed to continuing its efforts to improve tax compliance and broaden the tax base.