KARACHI: Regional Tax Office-1 (RTO-1) Karachi has exceeded its monthly tax collection target set by the Federal Board of Revenue (FBR) for January 2025. RTO-1 was tasked with collecting Rs26 billion under its administrative jurisdiction but successfully amassed Rs28.6 billion by the month’s end, surpassing the target by 10 per cent.

This strong performance reflects positively on the FBR’s efforts to meet its annual tax collection target for the fiscal year 2024-25, especially given the country’s challenging economic conditions.

RTO-1 has implemented a proactive enforcement strategy to boost domestic tax contributions. Key measures include actions against tax evaders, on-the-spot stock inspections, and penalties for violations of point-of-sale (PoS) protocols. These enforcement efforts have led to a significant improvement in voluntary tax compliance, with collections rising from an average of Rs300-400 million to over Rs1 billion in December and January. RTO-1 aims to reach Rs3-4 billion in voluntary compliance by February and March 2025.

Chief Commissioner RTO-1 Dr Faheem Muhammad commended the dedication of his officers and staff in achieving these impressive tax collection figures. He also praised their efforts in raising awareness among the trading community about PoS regulations. Dr Muhammad urged taxpayers to enhance voluntary compliance, adding that this would serve the nation’s best interests and help curb tax evasion and fraud.