KARACHI: The Large Taxpayers Office Karachi (LTO Karachi) has posted a record tax collection of Rs2.58 trillion during the first nine months of fiscal year 2025–26, reflecting a 10% increase compared to the same period last year, according to official data released on Monday.
Provisional figures show that LTO Karachi collected Rs2.34 trillion during July–March 2024–25, highlighting improved revenue mobilisation despite ongoing economic challenges.
During the period under review, the office issued over Rs102 billion in refunds, indicating continued processing of taxpayer claims alongside revenue collection.
Direct taxes remained the largest contributor, rising 15% to Rs1.46 trillion from Rs1.27 trillion in the corresponding period last year. Officials attributed the growth largely to increased receipts from super tax, which contributed approximately Rs97 billion.
Sales tax collection recorded modest growth of 3%, reaching Rs938 billion compared to Rs913 billion a year earlier. The slower increase was linked to subdued economic activity and weaker consumption trends.
Refunds under sales tax also increased, with Rs59 billion issued during 9MFY26, up 16% from Rs50 billion in the same period last year, reflecting higher refund processing activity.
Meanwhile, federal excise duty (FED) collection showed strong growth, rising 17% to Rs180 billion from Rs154 billion in the previous year’s corresponding period.
Officials said the overall performance was driven by enhanced enforcement measures, broader audit coverage, and improved compliance among large taxpayers.
The Federal Board of Revenue (FBR) relies heavily on LTO Karachi, which oversees tax collection from major corporate sectors including manufacturing, banking, energy, and telecommunications.
Experts note that while revenue growth is encouraging, continued reliance on indirect taxation measures such as withholding and super tax underscores structural challenges in expanding Pakistan’s tax base.
The strong performance comes as FBR faces mounting pressure to boost revenues in line with fiscal consolidation targets agreed with international lenders, making large taxpayer units central to maintaining budget stability.
