Karachi has broken all previous records in tax collection during fiscal year 2024-25, emerging as the country’s top revenue contributor. Despite a tough economy, the city posted a 29% rise in federal tax collections and a 29.5% increase in provincial sales tax on services, collected by the Sindh Revenue Board (SRB). This surge reaffirms Karachi’s role as Pakistan’s financial powerhouse.
The Large Taxpayers Office (LTO) Karachi collected a historic Rs3.256 trillion, up from Rs2.515 trillion last year. In a single day, LTO Karachi brought in Rs184.7 billion, another record. Tax collections in June 2025 alone totaled Rs449.05 billion, showing a massive 48% growth compared to June 2024. LTO officials credited the milestone to their team’s dedication and professionalism.
Breaking down the numbers: Income tax collections stood at Rs1.798 trillion, up 32% from last year. Sales tax revenue reached Rs1.235 trillion, a 21% rise, while Federal Excise Duty (FED) soared by 63% to Rs222.2 billion. These totals exclude port-related taxes, further emphasizing Karachi’s central role in the national economy.
At the provincial level, SRB collected Rs306.6 billion, up from Rs236.8 billion in FY24. June was especially strong for SRB, with a record Rs40.5 billion collected, marking a 44% year-on-year increase. Collections also grew 3% from May 2025. SRB’s revenue comes mostly from General Sales Tax (GST) on services, with 80% of it generated from Karachi.
Karachi hosts five major FBR offices, including RTO-1, RTO-2, MTO, CTO, and LTO, handling income tax, sales tax on goods, and FED. Many businesses based outside the city still pay taxes through Karachi headquarters, further boosting its share. Even with low inflation and modest economic growth, Karachi’s strong compliance and corporate presence have made it a tax collection leader once again.