FBR Proposes Giant Rs. 12.9 Trillion Tax Collection Target For 2024-25

The Federal Board of Revenue (FBR) has set an ambitious tax revenue target of Rs. 12.9 trillion for FY2024-25, Rs. 3.72 trillion higher than the current fiscal year. Sources told ProPakistani that FBR has proposed a higher cap on income tax, capital value tax, sales tax on goods and services, and Federal Excise Duty (FED). The target for Inland Revenue has been proposed at Rs. 11.37 trillion which includes Rs. 1.31 trillion in sales tax, bringing the total expected revenue from this category to Rs. 3.6 trillion. FBR has proposed Rs. 1.59 trillion in customs duty, Rs. 267 billion higher than the current fiscal year. It bears mentioning that FBR is facing a revenue shortfall of Rs. 160 billion by the end of this outgoing year. ProPakistani reported earlier that the mix of FBR collection is expected to increase from Direct tax (38% in FY25 from 35% in FY24) with 25% YoY growth expected in absolute target in the same. This could be from a mix of increases in existing tax rates and bringing untapped segments into the tax net. All details will be confirmed in tomorrow’s federal budget presentation.