Connect with us

Business

In a historic first, FBR collects over Rs1tr in Dec 2023

Published

1 year ago

on

  • FBR achieves net collection of Rs984 billion. 
  • Targets for first 6 months also surpass by Rs43bn. 
  • FBR chairman thanks taxpayers for support.

ISLAMABAD: The Federal Board of Revenue (FBR) has created history as it managed to collect over Rs1 trillion in taxes in December 2023, surpassing the target for the month, The News reported Monday. 

According to the top tax collection body, Rs1,021 billion was collected in December 2023 and reached a net collection of Rs984 billion after adjusting refunds of Rs38 billion issued during the month.

Targets for the first six months of the current financial year were also surpassed which was Rs4,425 billion — as agreed with the International Monetary Fund (IMF) — which was surpassed by Rs43 billion and a collection of Rs4,468 billion was recorded.

In the corresponding six months of the previous year, FBR collected Rs3,428 billion, thus registering an increase of more than Rs1 trillion. This is even though refunds of Rs230 billion have been issued against Rs177 billion during the corresponding period of the previous year and continuous import compression.

Contraction in imports continues to impede revenues collected at the import stage. In the past, the revenue mix at the import stage and domestic taxes used to be 50:50. This has now changed to 36:64 and the FBR has absorbed the entire impact of import compression by raising more revenues domestically.

The ratio of direct and indirect taxes has also altered and the share of direct taxes has increased to 49% for the first six months. However, in December alone, the share of direct taxes was recorded at 59%. This share also registered an increase of 41% in the first six months as compared to the corresponding period of the previous year.

Again, within direct taxes, the FBR during the past two years, has reduced the share of withholding taxes from 70% to 55-58%. However, during December 2023, the share of withholding taxes has been recorded as low as 40%.

It would not be out of place to mention that the FBR collected Rs1 trillion as an annual collection back in 2007-08. It took 50 years to achieve this milestone, whereas, in a span of only 15 years, this feat has been accomplished in a single month through sheer dedication and hard work of field formations and top brass.

FBR Chairman Malik Amjed Zubair Tiwana congratulated Member (Customs Operations), Member (IR-Operations) and their teams for achieving this unsurmountable task.

He also thanked the taxpayers, without whose continuous support and correct declarations, this target could not have been accomplished.

Pakistan Business Council said that collecting more taxes from taxpayers was not an achievement IMF’s target does not focus on FBR’s ability to raise tax revenue. 

“Did the [FBR] bring real estate, retail wholesale sales, doctors, beauty salons, and transport into the tax net?” it questioned. 

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

The total amount of Pakistan’s liquid foreign reserves is $15.95 billion.

Published

2 days ago

on

By

As of February 14, Pakistan’s total liquid foreign reserves were $15,947.9 million, with the State Bank of Pakistan’s (SBP) holdings being $11,201.5 million.

Official figures for the week ending February 14, 2025, show that the central bank’s liquid foreign exchange reserves rose by $35 million to $11,201.5 million.

Commercial banks maintained net foreign reserves of $4,746.4 million during the period under review, according to the breakdown of foreign reserves.

The nation’s total liquid foreign reserves as of the week ending February 07, 2025, were $15,862.6 million.

Of these, the central bank held $11,166.6 million in foreign reserves, while commercial banks kept $4,696 million in net reserves.

Continue Reading

Business

In January 2025, RDA inflows reach 9.564 billion USD.

Published

2 weeks ago

on

By

Remittances under the Roshan Digital Account (RDA) increased from US $9.342 billion at the end of 2024 to US $9.564 billion by the end of January 2025.

The most recent data issued by the State Bank of Pakistan (SBP) revealed that remittance inflows in January totaled US$222 million, compared to US$203 million in December and US$186 million in November 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own a Non-Resident Pakistan Origin Card (POC), desire to engage in banking, payment, and investing activities in Pakistan using these accounts, which offer cutting-edge banking options.

Nearly 778,697 accounts were registered under the scheme by the end of January 2025, according to the data.

By the end of January, foreign-born Pakistanis had contributed US $59 million to Roshan Equity Investment, US $479 million to Naya Pakistan Certificates, and US $799 to Naya Pakistan Islamic Certificates.

Continue Reading

Business

FBR lowers Karachi’s built-up structure property valuation rates

Published

2 weeks ago

on

By

A year-by-year breakdown of the depreciation value of residential and commercial built-up properties is included in the updated property valuation rates for Karachi that the FBR has announced.

The notification said that built-up structural values on residential property will be gradually reduced.

A residential home’s built-up structure, which is five to ten years old, will lose five percent of its worth.

In a similar vein, constructions between the ages of 10 and 15 will lose 7.5% of their value, while those between the ages of 15 and 25 would lose 10%. Built-up structures that are more than 25 years old will be valued similarly to an open plot.

Furthermore, age will also be used to lower the valuation of built-up properties, such as apartments and flats.

Structures that are five to ten years old will depreciate by ten percent, while those that are ten to twenty years old will depreciate by twenty percent. A 30% depreciation will be applied to properties that are 20 to 30 years old, while a 50% reduction will be applied to those that are above 30 years old.

In terms of commercial built-up properties, buildings that are 10 to 15 years old will lose 5% of their value, while those that are 15 to 25 years old will lose 8%. The value of properties that are more than 25 years old will drop by 10%.

In contrast, there would be a 15% boost in the value of commercial properties in the Defence Housing Authority (DHA) that face any Khayaban.

Continue Reading

Trending