ISLAMABAD: The government on Saturday said revenue collection from import duties and taxes had risen by 25% this year despite tariff reductions, as Prime Minister Shehbaz Sharif chaired a weekly review meeting on tax reforms and directed officials to accelerate modernization of the country’s revenue system.
The Federal Board of Revenue (FBR), Pakistan’s chief tax authority, has been at the center of the government’s reform drive, which includes automation, digital monitoring and the use of artificial intelligence to curb leakages and meet ambitious tax targets.
Officials told the meeting that tariff reforms carried out this year had been supported by improvements in customs processes, while duty-free imports of raw materials and intermediate goods had increased sharply under measures aimed at boosting manufacturing and exports.
“Tariff reforms this year have had no negative impact on revenue collection,” officials said during the briefing, according to a statement released by the Prime Minister’s Office. “Instead, duties and taxes at the import stage have increased by 25%.”
“This rise has come despite only a 3.6% increase in the volume of dutiable goods, disproving the concern that lower tariffs would reduce revenue,” they added.
