FBR reports 29.4 per cent jump in direct tax collection in six months

ISLAMABAD: Tax revenue has seen a significant boost in the first six months of the 2024-25 fiscal year, with direct tax collection rising 29.4 per cent compared to the same period last year, according to the Federal Board of Revenue (FBR).

This increase amounts to an additional Rs632.7 billion in revenue.

In December 2024 alone, direct tax collection grew by 36.1 per cent compared to December 2023.

Sales tax collection also recorded strong growth, increasing 25.3 per cent over the six-month period and adding Rs382.9 billion to the total revenue. This includes a 16.8 per cent rise in sales tax from imports and a 38.6 per cent jump in domestic sales tax.

For December 2024, sales tax revenue went up by 33.3 per cent, with tax from imports increasing 30.1 per cent, while domestic sales tax rose 38.3 per cent compared to the previous year.

Revenue from Federal Excise Duty (FED) grew by 31 per cent, bringing in an additional Rs82 billion in the first half of the fiscal year. December alone saw an even sharper rise, with FED collection jumping 61.3 per cent from the same month in 2023.

Customs duty collection also saw an uptick, increasing 10.7 per cent (Rs58 billion) over the six-month period. In December 2024, customs duty revenue was up by 22.7 per cent compared to last year.

These numbers highlight stronger enforcement, better compliance, and increased economic activity, leading to higher tax revenues for the country.

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