FBR Targets 9% Tax-to-GDP Ratio, Eyes PKR 11,174 Billion Revenue for FY 2024-25

Islamabad: The Federal Board of Revenue (FBR) has set a revenue target of PKR 11,174 billion for the fiscal year 2024-25, aiming to achieve a 9% tax-to-GDP ratio.

According to Zameen.Com, the FBR's new goal reflects a significant 20.8% increase over the PKR 9,252 billion collected in the previous fiscal year. This ambitious target is detailed in the FBR’s report titled "Evidence-Based Revenue Forecasting for 2024-2025," which bases its projections on autonomous growth from the base year of 2023-24, resulting in an anticipated revenue increase of PKR 1,922 billion. Notably, these projections do not account for any new taxes. The FBR's optimism is further underscored by a current tax-to-GDP ratio improvement to 9.0%, up from 8.5% last year, based on first-quarter data.

The forecast relies on existing buoyant tax sources and positive economic indicators, suggesting that favorable local and global economic conditions could further enhance tax revenues. Additionally, the expected easing of import restrictions may increase tax collection at the import stage.