ISLAMABAD: The Federal Board of Revenue (FBR) has exceeded the target for the fourth consecutive month, primarily due to a 43 per cent growth in domestic collection contributed by the unprecedented inflation.

The revenue collection in October surpassed the target by Rs2 billion to Rs707bn against a projected target of Rs705bn. The revenue collection increased by 37pc when compared with Rs516bn over the corresponding month last year.

These figures would further improve before the close of the day and after book adjustments have been taken into account.

During the first four months (July-October) of FY24, the FBR collected Rs2.748 trillion, exceeding the Rs2.682tr target by Rs66bn, according to provisional data released on Tuesday.

The revenue collection in July-October rose to Rs2.682tr, an increase of 24.22pc from last year’s Rs2.159tr as inflation soared to record levels due to high energy costs.

The government has projected a revenue collection target of Rs9.415tr for FY24 as against the revised collection of Rs7.2tr in FY23, an increase of Rs2.219tr or 30pc.

At the same time, the FBR also issued refunds amounting to Rs158bn during the first four months as against Rs113bn refunded in the corresponding period of last year.

The FBR chairman said that the board is determined to achieve targets in the coming months as well.

The government hopes to achieve the tax target based on the projected economic growth of 3.5pc, average inflation of 21pc and some revenue measures. The autonomous growth in revenue — to come from GDP growth and inflation — is projected at Rs1.76tr in 2023-24.

The official said that the real impact of revenue collection at the import stage will come in the next couple of months.

Published in Dawn, November 1st, 2023