Corporate Sector Paid Highest Rs. 3 Trillion Income Tax in FY24

The Federal Board of Revenue (FBR) has disclosed that the corporate sector contributed Rs 3.061 trillion in income tax during the fiscal year 2023-24, making it the biggest tax contributor for the period. Individuals came in second at Rs. 1.119 trillion, while associations of persons (AOPs) paid Rs. 353 billion. Direct taxes clocked in 121.8 percent of the revised target, while income tax at 121.2 percent and capital value tax (CVT) at 125.2 percent in total tax collections. Collections for the Workers Welfare Fund (WWF) and Workers Profit Participation Fund (WPPF) reached an encouraging 196.8 percent of the target. Sales tax and Customs duties fell short at 85.6 percent and 83.4 percent of their targets, respectively, but the Federal Excise Duty (FED) collection came in at 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. The ambiguity has resulted in ongoing correspondence between the FBR and the Accountant General of Pakistan Revenue (AGPR).