ISLAMABAD: The corporate sector contributed Rs 3,061 billion as income tax during 2023-24, according to a report by the Federal Board of Revenue (FBR).
The FBR report detailed the breakdown of tax receipts for the fiscal year 2023-24, highlighting performance across various segments.
Corporate tax receipts topped the list with Rs 3,061 billion, followed by Rs 1,119 billion from individuals and Rs 353 billion from associations of persons (AOPs). This underscores FBR’s progress in fostering balanced contributions and boosting tax compliance.
The report emphasized the FBR’s achievements in FY 2023-24, with direct taxes exceeding revised targets significantly.
Direct taxes reached 121.8% of their target, with income tax collections at 121.2% and capital value tax (CVT) surpassing expectations at 125.2%. The Workers Welfare Fund (WWF) and Workers Profit Participation Fund (WPPF) collections were particularly impressive, achieving 196.8% of the target. This reflected the FBR’s enhanced efforts in tapping these revenue streams.
While sales tax (85.6%) and Customs collections (83.4%) fell slightly below their targets, they still made substantial contributions to the overall revenue.
Federal Excise Duty (FED) collections performed steadily, reaching 96.2% of the target, demonstrating resilience in challenging circumstances. These results collectively highlight FBR’s dedication to ensuring a diverse revenue base, fostering fiscal sustainability, and promoting economic growth.
The report also noted that during 2023-24, Customs Duty figures included “Special Customs Duty” amounting to Rs 21.3 billion, levied as Export Development Surcharge (EDS) under Section 11 of the Finance Act 1991 and amended by an SRO dated January 4, 2003.
The collection was part of Customs Duties and reconciled by the FBR with the Accountant General of Pakistan Revenue (AGPR) under the Account Head B-02203 (Receipts).
However, the Finance Act 2022 amended the Export Development Fund (EDF) Act 1999 to stipulate that the EDF shall include the “whole receipts of Export Development Surcharge.” As a result, EDS is now transferred directly by the State Bank of Pakistan (SBP) to the EDF Account.
This amendment created ambiguity, leading to non-reconciliation of figures between FBR and AGPR. The Finance Division directed further correspondence on the matter, and discussions are ongoing, the report added.
