The Federal Board of Revenue (FBR) has reported a record tax revenue collection of RS872 billion in January, marking a 29 percent increase compared to the same month last year when RS677 billion was collected.

This performance comes despite 10 percent reduction in interest and a 22 percent decrease in inflation from the previous year.

FBR also highlighted significant growth across different tax categories, with income tax revenue increasing by 28 percent, with VAT tax revenue increasing by 29 percent and federal collection of excise duties by 34 percent.

Customs authorities also experienced a significant boost that increased by 30 percent and signaled a resuscitation of economic activity and growth in the country.

This marks the first time this year that the customs have registered such a significant increase.

The strong income benefit in January reflects the FBR’s efforts to strengthen tax collection and the total recovery of the economy.

However, it reflects a loss of 85 billion RS for January 2025A Totasl tax collection of RS 872 billion, fell below the target of 957 billion. Rs.

In December 2024, the tax department collected $ 1,326 billion, missing the target of $ 1,373 billion for that month.

The International Monetary Fund (IMF) assesses tax collection quarterly than monthly, with the target for the period January to March 2025, which was set at RS3,150 billion. They expect tax collections to improve in March as economic activity increases.