FBR Hits 10.3% Tax-to-GDP, Eyes 18% by 2027

ISLAMABAD: The Federal Board of Revenue (FBR) has notched a landmark triumph, elevating the tax-to-GDP ratio to 10.3% in FY2024-25, shattering the 8.7% average of the past five years, fueled by a ferocious direct tax surge to 5.1% of GDP and sales tax at 3.4%.

The FBR report spotlights Rs874 billion reclaimed via enforcement juggernauts in 2024-25—an eight-fold explosion from Rs105 billion last year—powered by laser-focused interventions and structural overhauls.

FBR eyes 18% tax-to-GDP by 2027-28. Sugar yielded Rs25 billion, cement Rs12.8 billion in H1 FY24-25 via real-time production tracking.

Retail compliance roared with 40,000+ POS terminals covering 38% of Tier-1 retailers. Legal settlements and swift dispute resolution unlocked Rs255 billion.

The faceless customs assessment turbocharged neutrality, spiking tax per GD—e.g., Dry Port Lahore (East) from Rs25 million (Apr-Jun 2023) to Rs35 million (2024).

A peer-reviewed officer system rewards excellence, curbs discretion, plugs leaks. Voluntary compliance + 26.3% revenue leap in 2024-25 propel the ratio upward.

Over a decade, indirect taxes dipped from 5.8% to 5.2%, direct from 3.7% to 5.1%. FBR forecasts relentless revenue acceleration and ratio climb.