- Direct taxes totaled Rs 4,531 billion, an increase of 38.5%.
- 57% increase in advance tax collection observed in FY24.
- WHT from dividends sees the largest increase at 69.9%.
ISLAMABAD: The Large Taxpayers Office (LTO) Karachi collected 30.7% tax from total revenue, the highest tax collection from any city in the country, in terms of income tax, tax sales, customs duties and federal excise duties.
With tax revenues of 17.1% and 14.2%, LTOs of Lahore and Islamabad secured the second and third places respectively. News reported.
The Federal Board of Revenue (FBR) yearbook for 2023-24 shows that the share of indirect taxes was 51.3% and that of direct taxes, including withholding taxes, was 48.7%.
Direct taxes totaled Rs 4,531 billion, a substantial increase of 38.5 per cent from the Rs 3,271 billion collected in the previous financial year (2022-23). Refunds totaling Rs52 billion were granted to claimants in the same financial year. Income tax, workers’ welfare fund/workers’ profit-sharing fund and capital value tax are all sources of direct tax revenue. In particular, withholding taxes, withholding taxes, payments with declarations and recovery on demand are all included in the income tax category.
Compared to Rs 162 billion collected in the previous fiscal year, the total revenue from on-demand collection in FY 2023-24 was around Rs 127 billion, a decrease of 21. 5%.
A significant increase of 57% in advance tax collection was observed in FY24, when it increased from Rs 975 billion to Rs 1,530 billion in FY 2022-23.
The Payments with Returns category includes payments made at the time of submission of annual tax returns. For the financial year 2023-24, collections stood at Rs 162 billion, compared to Rs 119 billion in the previous financial year, a growth of 35.8 per cent.
During the financial year 2023-24, the collection of withholding tax (WHT) increased to Rs 2,740 billion, a significant increase from the previous financial year’s Rs 2,007 billion, a growth of 36.5%. All major WHT categories experienced positive growth.
Notably, WHT from dividends saw the largest increase, approximately 69.9%. This is followed by the growth in revenues from technical fees, profits on bank debts/interests and securities, salaries and the sale of real estate, which increased by 53.6, 52.8, 39.3 and 37 respectively. .0%.
Sales tax revenue totaled Rs 3,087 billion in the financial year 2023-24, which was Rs 495 billion more than the previous fiscal year. This represents approximately 33.2% of the total tax collection.
Sales tax collected at the import stage increased by 17.0%, while domestic sales tax saw an increase of approximately 22.6%. The sales tax target for the year was achieved at 85.6% of the stated target. Net collection of domestic sales tax (STD) for the financial year 2023-24 reached Rs 1,222.8 billion, an increase of 22.6 per cent from the financial year’s Rs 997.8 billion previous. This represents an additional revenue of Rs225.0 billion compared to FY23.
As much as 62.4% of STD’s revenue came from 15 sectors, including power, POL products, sugar, cement, cigarettes and cotton yarn. Electric power became the main contributor, accounting for 22.5% of the total, driven by an increase in electricity tariffs. Conversely, the contribution of POL products declined from 11.9% in FY 2022-23 to 9% in FY 2023-24.
All major revenue generators listed showed positive growth except natural gas and POL products. Import sales tax (STM) collection stood at Rs 1,863.9 billion, compared to Rs 1,593.5 billion in FY 2022-23, a growth of 17 per cent. The collection of customs duties experienced positive growth of 18.5%. Net collection for FY24 stood at Rs 1,104.1 billion compared to Rs 931.7 billion in FY 2022-23, thereby contributing around 12% of the FBR’s total revenue for the current exercise.
Net federal excise duty (FED) collection jumped 56.1 percent from Rs 369.9 billion in the previous fiscal year to Rs 577.4 billion in FY2024. As a result, the FED’s contribution increased from 5.2% to 6.2%. Major contributors to FED revenue include sectors such as cigarettes, cement, beverage/food concentrates, and air transportation. All major sectors, except concentrates and automotive, witnessed positive growth in FY 2023-24.