The federal government recorded a significant increase in tax revenue, collecting Rs577 billion in federal excise duty during the fiscal year 2024.
This marks a 56% growth compared to the previous fiscal year's Rs370 billion, according to documents released by the Federal Board of Revenue (FBR).
The increase of Rs207 billion was attributed to improved collections across several sectors, including cigarettes, cement, beverages, air tickets, petroleum, fertilizers, milk, juices, and alcohol.
Sector-Wise Growth in Excise Duty Revenue
- Cigarettes: Excise duty on cigarettes rose by Rs95 billion to exceed Rs237 billion, making it the largest contributor to the increase.
- Cement: Revenue from cement increased by Rs11.32 billion, reaching Rs77.71 billion.
- Beverages: Tax collection from soda water beverages witnessed a 113% surge, amounting to Rs36.50 billion.
- Air Tickets: Excise duty on air tickets climbed by Rs7.22 billion, totalling over Rs47 billion.
- Fertilizers: The sector contributed Rs29 billion in excise duty revenue.
Other sectors, such as milk and cream, also reported higher tax revenues, adding Rs5 billion. Alcohol recorded a 102% annual growth in tax collection, contributing Rs2.29 billion to the national exchequer. Excise duty revenue from syrups, squashes, fruit juices, and washing machines also saw notable increases.
However, a slight decrease in excise duty was observed on motor cars and chemicals used in certain beverages.
The FBR anticipates continued growth in tax revenue for the current fiscal year, driven by consistent performance in key sectors and improved tax administration.
