As a large taxpayer city of the country, Karachi has set a new record in tax collection, reporting a 20 percent (pc) increase in tax receipts compared to the same period last year.
Reports suggest that, during the first five months of the fiscal year 2024-25, Karachi collected Rs1,110 billion in taxes, a significant rise from Rs924 billion in the corresponding period of the previous fiscal year.
LTO Karachi’s direct tax collection during the first five months amounted to Rs542 billion, up from Rs451 billion in the same period last year, marking a 20pc increase. The office also issued Rs47 billion in refunds over the same period.
Indirect and sales tax collection by LTO Karachi saw an 18pc rise, accumulating Rs494 billion in the first five months. This compares to Rs420 billion collected in the corresponding period last year.
The increase is largely driven by higher local transactions, where sales tax collection saw a 30pc jump to Rs203 billion. However, challenges remain in the collection of import sales tax due to a decline in import bills, according to sources from the Federal Board of Revenue (FBR).
LTO Karachi, also known as the ‘Mini FBR,’ has collectively collected Rs1,160 billion in total taxes over the first five months of the fiscal year 2024-25.
