FBR sets new record for January with Rs 872b revenue collection

The Federal Board of Revenue (FBR) has reported a record tax revenue collection of Rs872 billion in January, marking a 29 percent increase compared to the same month last year, when Rs677 billion was collected.

This achievement comes despite a 10 percent reduction in interest rates and a 22 percent decline in inflation from the previous year.

The FBR also highlighted significant growth across various tax categories, with income tax revenue rising by 28 percent, sales tax revenue increasing by 29 percent, and Federal Excise Duty collection up by 34 percent.

Customs Duties also saw a substantial boost, increasing by 30 percent, signaling a revival of economic activity and growth in the country.

This marks the first time this year that Customs Duties have registered such a significant increase.

The strong revenue performance in January reflects the FBR’s efforts to strengthen tax collection and the overall recovery of the economy.

It does however reflect a shortfall of Rs 85 billion was  for January 2025a totasl tax collection of Rs 872 billion, fell short of the target of Rs 957 billion.

In December 2024, the tax department collected Rs 1,326 billion, missing the target of Rs 1,373 billion for that month.

The International Monetary Fund (IMF) assesses tax collection on a quarterly basis rather than monthly, with the target for the January to March 2025 period set at Rs3,150 billion. They expect tax collections to improve in March as economic activity increases.