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Nearly 57.3 percent of Pakistan’s sales tax collection on domestic supplies in 2024-25 came from 15 major sectors, including electrical energy, POL products, sugar, cement and cotton yarn. Fresh data from the FBR shows that the net collection of Sales Tax (Domestic) climbed to Rs1619.5 billion, reflecting a strong 32.4 percent rise from Rs1222.9 billion last year. This marks an additional Rs396.6 billion in revenue compared with the previous financial year.
Electrical energy emerged as the highest contributor, making up 22.8 percent of the total due to increased power tariffs. Meanwhile, the share from POL products dropped to 2.6 percent compared with 6.9 percent in the preceding year. Most of the major revenue-generating sectors posted positive growth, except for cigarettes and POL products.
Sales Tax (Domestic) from motor cars recorded a dramatic 158.8 percent jump. This growth was driven by a surge in car manufacturing, which increased from 79,594 units in FY 2023-24 to 111,402 units in FY 2024-25. Car sales also rose from 81,579 units to 112,203 units during the same period. The rise in both production and sales significantly boosted revenue collection.
Motorcycle Production Boosts Sales Tax Growth
Motorcycle production and sales witnessed similar gains. Sales Tax (Domestic) on motorcycles grew by 136.2 percent as manufacturing increased from 1,150,090 units in FY 2023-24 to 1,514,718 units in FY 2024-25. Sales rose from 1,150,112 units to 1,518,752 units, driving higher revenue in this category as well.
The data further revealed that the top fifteen imported commodities contributed 71.3 percent of Sales Tax (Import) during 2024-25. The FBR reported that Sales Tax (Import) remained a key component of overall federal revenue. The net collection reached Rs2281.9 billion in FY 2024-25, up from Rs1863.9 billion a year earlier, showing a growth of 22.4 percent.
Petroleum products continued to dominate Sales Tax (Import), contributing 13.8 percent of the total. Collection from POL products rose slightly to approximately Rs315.1 billion, compared with Rs309.6 billion in FY 2023-24.
