More than half of Pakistan’s domestic sales tax now originates from just fifteen key sectors, led by electrical energy, petroleum products, sugar, cement, and cotton yarn, according to the Federal Board of Revenue (FBR).
FBR data shows that these sectors accounted for 57.3 percent of total domestic sales tax collection in FY2024–25, underscoring their central role in the country’s tax base. Domestic sales tax revenue rose to Rs1,619.5 billion during the fiscal year — a 32.4 percent increase from Rs1,222.9 billion in FY2023–24.
Electrical energy remained the largest contributor, representing 22.8 percent of total domestic sales tax, largely driven by higher power tariffs. In contrast, the share of petroleum products fell sharply to 2.6 percent from 6.9 percent a year earlier due to weaker demand and changes in tax policy.
While most sectors posted gains, cigarettes and petroleum products saw declines in their revenue share. The motor vehicle sector, however, recorded exceptional growth, with sales tax from motor cars surging 158.8 percent amid a production jump from 79,594 to 111,402 units and sales rising from 81,579 to 112,203 units.
A similar boom occurred in the motorcycle segment, where sales tax collection rose 136.2 percent as production climbed from 1.15 million to 1.51 million units, alongside a matching increase in sales.
FBR documents attribute the overall growth in domestic sales tax to stronger industrial output, rising consumer demand, and improved compliance in key manufacturing sectors.
