ISLAMABAD: The federal revenue collection during the first month of the current fiscal year (FY25) exceeded the target by nearly Rs3 billion, driven by a significant increase in imports, according to provisional data released on Wednesday.

The Federal Board of Revenue (FBR) collected Rs659bn in July against the projected target of Rs656bn. The July collection also showed a 22 per cent growth compared to Rs542bn in the same month last year.

In the budget for FY25, the government projected a collection target of Rs12.9 trillion, more than 41pc higher than the collection set for FY24. The government believes that the automated revenue collection will be Rs11.1tr in FY25.

Rs78bn refunded to exporters in first month of FY25

At the same time, the FBR estimates that the new revenue measures will generate up to Rs2tr in FY25. In FY24, the FBR collected Rs9.285tr against the downward revised target of Rs9.252tr. The budgetary collection target for FY24 was projected at Rs9.415tr.

To facilitate exporters, the FBR paid Rs78bn in refunds in the first month of the current fiscal year against Rs49bn over the corresponding month last year, an increase of 59pc.

Income tax collection stood at Rs284bn in July 2024 against Rs236bn over the corresponding month last year, indicating a growth of 20pc, mainly because of a massive increase in income tax rates for salaried and non-salaried individuals.

Sales tax collection reached Rs256bn in July 2024 against Rs202bn over the same month last year, an increase of 26pc, mainly because of withdrawal of exemptions on several products, including stationary, milk products, etc.

The collection of customs duty stood at Rs82bn in July 2024 against Rs73bn in the same month last year, showing an increase of 13pc, mainly because of a double-digit growth in imports of goods during the month under review.

The collection of federal excise duty (FED) showed an increase of 22pc to Rs37bn in July this year against Rs31bn over the same month last year. The government has also increased the rate of FED on several products in the budget.

An official announcement said the FBR has exhibited a promising start for FY25 regarding the revenue collection by putting in an outstanding effort to achieve the monthly tax target despite all the economic challenges faced by the country.

The performance of FBR amidst the current financial and economic difficulties reflects unwavering dedication of the tax officials to achieve the assigned target for the current financial year, it added.

Published in Dawn, August 1st, 2024