FBR Tax Revenue for 2024-25 Surpasses Rs. 1 Trillion Mark

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The Federal Board of Revenue (FBR) has achieved a historic milestone, collecting over Rs. 1 trillion in taxes for June 2025, contributing to a robust fiscal year 2024-25. Driven by reforms and digitalization, the FBR’s success reflects growing economic discipline, though challenges like high debt servicing persist. This article explores the achievement, its drivers, and the road ahead for Pakistan’s fiscal health.

In June 2025, the FBR amassed Rs. 1,017.8 billion, with income tax collections reaching Rs. 628.3 billion and sales tax at Rs. 389.5 billion, as reported by ARY News. This follows a strong fiscal year, with total collections for 2024-25 projected to hit Rs. 11.737 trillion, slightly below the revised target of Rs. 11.9 trillion but a 30% increase from the previous year’s Rs. 9,306 billion, per Dawn. The surge is attributed to a 71% rise in tax filers, with 2.8 lakh new filers registered, bringing the total to 7.2 million by June 30, 2025, according to The Express Tribune. “FBR’s digitization and reforms have boosted compliance,” a spokesperson noted on X, crediting institutional support from Prime Minister Shehbaz Sharif’s office.

The retail sector contributed significantly, with point-of-sale (POS) systems driving Rs. 455 billion in additional income tax, per The Friday Times. Customs clearance times also dropped from 52 to 12 hours, enhancing efficiency, as highlighted by user @AdeelAfzal06 on X. However, critics point to structural issues, with debt servicing consuming Rs. 9.775 trillion annually, dwarfing revenue gains, per The Friday Times. The reliance on domestic taxes, now 64% of collections due to import compression, underscores the need for broader tax nets, as noted by Business Recorder.

This milestone signals Pakistan’s economic resilience but highlights the need for sustainable growth. Expanding the tax base and curbing wasteful spending remain critical to escaping the debt trap. The FBR’s efforts, if sustained, could pave the way for fiscal stability, provided reforms prioritize efficiency over oppressive taxation.