The Federal Board of Revenue (FBR) has made history by achieving a record-breaking tax collection in December 2024, surpassing all expectations. This achievement marks a significant milestone for the FBR, with over Rs1,330 billion collected in a single month, the highest ever in the organization’s history.
Unprecedented Tax Collection Achievement
FBR officials have confirmed that by January 30, more than Rs800 billion in taxes had already been collected, setting a new benchmark for tax revenue generation. Despite setting a target of Rs956 billion for January 2025, with a potential shortfall of Rs40 to 50 billion, officials remain optimistic about approaching and potentially exceeding the set target.
The International Monetary Fund (IMF) evaluates tax collection on a quarterly basis, with a target of Rs3,150 billion for the period from January to March. Officials anticipate improved collection in March as economic activity continues to pick up, reflecting positive growth trends.
Challenges and Regulations
However, despite the record-breaking achievement in December, there was a notable shortfall of Rs384 billion in tax revenue from July to December 2024-25. In the first six months of the fiscal year, FBR managed to collect Rs5,624 billion in taxes, falling short of the targeted Rs6,008 billion for the same period.
In response to proposals by the Association of Builders and Developers (ABAD) to relax property purchase regulations, FBR stood firm on its stance. ABAD suggested exempting properties up to Rs25 million and first homes worth up to Rs50 million from scrutiny, but FBR maintained that properties exceeding Rs10 million would still require disclosure of income sources through a wealth statement.
FBR officials reiterated that current laws do not allow changes to property evaluation for tax purposes, specifically including gold, stocks, or inherited properties. The FBR clarified that all property purchases must be recorded under the National Tax Number (NTN) to ensure transparency and compliance.
A proposal to amend tax laws to expand eligibility for cash and cash equivalents to include spouses and dependents was under discussion. Further revisions to tax amendment recommendations are expected to be submitted for review, reflecting ongoing efforts to enhance tax regulations and enforcement.
By achieving a record-breaking tax collection in December 2024, the FBR has demonstrated its commitment to revenue generation and economic stability. Despite facing challenges and regulatory complexities, FBR remains focused on meeting targets and enforcing tax compliance to ensure sustainable growth and financial stability in the country.
