High inflation helps FBR collect 30pc more revenue

The Federal Board of Revenue (FBR) recorded a 30 per cent increase in tax collection during the first seven and half months of 2023-24 owing primarily to the country’s historical inflation rate. In absolute terms, the FBR collected Rs5.150 trillion from July 1, 2023 to mid-February compared to Rs3.973tr in the corresponding period of FY23. During this time, tax refunds increased by more than 28pc. The FBR’s performance report was released by the finance ministry on Tuesday at a time when the caretaker finance sought approval from the interim cabinet to overhaul the top administrative structure of tax machinery, which, according to the report, performed well by showing impressive growth in collection in the first fortnight of February. Provisional data released showed that there was a 17pc growth recorded year-on-year in the first month of the current fiscal year, which increased to 36pc in August 2023, 21pc in September, 37pc in October, 38pc in November, 34pc in December and 25pc in January.