Share of Direct Taxes in Revenue Collection Hits Almost 50% in FY24

The share of direct taxes increased from 45.7 percent in fiscal year 2022-23 to 48.7 percent in fiscal year 2023-24.  The Federal Board of Revenue (FBR) report on annual performance for 2023-24 said that another positive change noted during last few years is the increasing share of direct taxes. During 2023-24, the share of direct taxes increased to 48.7 percent from 45.7 percent in the previous fiscal year.  The share of federal excise duty (FED) also slightly increased during the period under review.  Over the past several years, there has been a consistent upward trend in the share of direct taxes. This is a positive development, as direct taxes are considered progressive, meaning they are based on the taxpayer’s ability to pay, with higher earners paying a larger percentage, the FBR report added.