FBR sets record with highest-ever tax collection for Dec 2024

(Web Desk): The Federal Board of Revenue (FBR) has achieved its highest-ever tax collection for December 2024, surpassing Rs800 billion by January 30. The initial target for January 2025 was set at Rs956 billion, but officials anticipate a shortfall of Rs40 to 50 billion. However, they are confident that they will reach the target soon.

FBR officials explained that the International Monetary Fund (IMF) reviews tax collection on a quarterly basis, not monthly. The target for the first quarter of 2025 (January to March) is Rs3,150 billion, with expectations of higher collections in March as economic activity improves.

Data from the FBR revealed that December 2024 saw the highest monthly tax collection in its history, amounting to Rs1,330 billion. Despite this, there was a Rs384 billion shortfall in total tax revenue from July to December 2024-25. In the first six months of the fiscal year, FBR collected Rs5,624 billion, though the target was Rs6,008 billion.

In other news, FBR rejected proposals from the Association of Builders and Developers (ABAD) to relax property purchase regulations. ABAD had suggested that properties worth up to Rs25 million and the first home valued up to Rs50 million should be exempt from scrutiny. However, FBR confirmed that properties over Rs10 million would still require a wealth statement to disclose income sources.

The FBR also clarified that under current laws, changes to property valuation for tax purposes, including gold, stocks, or inherited properties, are not allowed. Additionally, property purchases will be registered under the National Tax Number (NTN).

Finally, a proposal to amend tax laws to include spouses and dependents for eligibility to receive cash or cash equivalents was discussed. Further revisions to these proposals will be submitted for review.