Islamabad: The Federal Board of Revenue (FBR) has reported a significant 71% increase in the number of tax filers for fiscal year 23, with an additional 2.2 million individuals submitting their tax returns. This surge has raised the total to 5.3 million filers as the deadline for the fiscal year 24 approaches on September 30, 2024.

According to Zameen.Com, the FBR achieved substantial revenue collections in FY23, totaling PKR 9.285 trillion (USD 33.22 billion), which exceeded the revised target of PKR 9.252 trillion. The data further reveals that the income tax collection stood at PKR 4.512 trillion, surpassing its target by 21.25%, although sales tax collections did not meet expectations, falling 14.16% short with a collection of PKR 3.096 billion. In the initial two months of FY25, the FBR collected PKR 1.456 trillion, which was PKR 98 billion below its target of PKR 1.554 trillion.

The shortfall in tax collections for September could prompt the government to consider additional fiscal measures. Analysts suggest that this may include a 100 basis point increase in withholding tax rates across various sectors to compensate for the revenue deficit.