Karachi is the financial and commercial capital
of Pakistan. In line with its status as a major port and the country's largest
metropolis, it accounts for a lion's share of Pakistan's revenue. According to
the Federal Board of Revenue's 2006-2007 year book, tax and customs units in
Karachi were responsible for 46.75% of direct taxes, 33.65% of federal excise
tax, and 23.38% of domestic sales tax. Karachi accounts for 75.14% of customs
duty and 79% of sales tax on imports. Therefore, Karachi collects 53.38% of the
total collections of the Federal Board of Revenue, out of which 53.33% are
customs duty and sales tax on
