The Federal Board of Revenue (FBR) has revealed that the corporate sector emerged as the largest contributor to income tax during the fiscal year 2023-24, with a total contribution of Rs. 3.061 trillion. This significant contribution underscores the corporate sector’s pivotal role in Pakistan’s tax revenue. Individuals ranked second, paying Rs. 1.119 trillion in income tax, while associations of persons (AOPs) contributed Rs. 353 billion.

Direct taxes performed exceptionally well, achieving 121.8 percent of the revised target. Within this category, income tax collections reached 121.2 percent of the target, while capital value tax (CVT) exceeded expectations, clocking in at 125.2 percent of the target. Collections for the Workers Welfare Fund (WWF) and Workers Profit Participation Fund (WPPF) were particularly impressive, reaching 196.8 percent of the target.

However, not all areas met their targets. Sales tax collections fell short, achieving only 85.6 percent of the target, while customs duties lagged behind at 83.4 percent. Federal Excise Duty (FED) collections performed slightly better, reaching 96.2 percent of the target.

The report also highlighted challenges in reconciling customs duty figures due to amendments in the Export Development Fund (EDF) Act 1999. This legislative change has created ambiguities, leading to ongoing correspondence between the FBR and the Accountant General of Pakistan Revenue (AGPR) to resolve the issue.