ISLAMABAD: The Federal Board of Revenue (FBR) collected Rs3.79 trillion in the first eight months of the current fiscal year (8MFY22), exceeding the target of Rs3.53tr by Rs268 billion, provisional data compiled by the tax body showed on Monday.
Compared with the revenue collection of Rs2.92tr in 2020-21, 31 per cent growth was posted in July-February FY22. The historic growth will provide a cushion to Prime Minister Imran Khan for subsidising petroleum prices, reduce electricity prices and offer incentives in taxation to the IT sector and industries.
The revenue collection in February rose by 29pc to Rs443bn from last year’s Rs345bn. The revenue collection stood at Rs443.3bn in February slightly over the target of Rs441bn by a margin of Rs2.3bn during the month under review.
Collection in last month rose by 29pc to Rs443bn
An official of the FBR said that these figures would further improve before the close of the day and after book adjustments have been taken into account.
The government has already announced that the new FBR revenue target will be Rs6.1tr. This target was revised upwards on the plea to keep the budget deficit at a committed place. The government, while preparing the budget for the current year, had assured the IMF of raising Rs5.829tr in FY22 against Rs4.721tr collected in FY21.
The rising inflation coupled with withdrawal of Rs343bn exemptions and several other measures like increase in the rates of withholding tax on vehicles, mobile phones and tax on entertainment will add revenue to the existing projections.
The gross collections including refunds and rebates payments increased from Rs3.07tr during July-February FY21 to Rs3.79tr in 8MFY22 showing an increase of 23.45pc.
The amount of refunds disbursed was Rs197bn during July- February FY22 compared to Rs157bn paid last year, showing an increase of 25.47pc. This is reflective of FBR’s resolve to fast-track refunds to prevent liquidity shortages in the industry.
With the rising import bill coupled with an increase in imports of smuggling-prone items on legal channels, Customs collection stood at Rs622bn during 8MFY22 as against Rs454bn last year, indicating a hefty growth of 37pc. The target projected under Customs was Rs567bn for the period under review, which was surpassed by Rs55bn.
Income Tax (IT) collection during 8MFY22 stood at Rs1.32tr as against the target of Rs1.30tr, showing a marginal increase of 1.53pc. IT collection showed a growth of 25pc when compared with Rs1.05bn collected during the same period last year. Very nominal IT refunds were paid during the months under review.
Meanwhile, Sales Tax collection jumped 35pc to Rs1.66tr from Rs1.23bn in the same period last year. The target was projected at Rs1.46tr and it was surpassed by Rs20bn. The growth came as a result of the highest ever rise in fuel prices, increase in imports and revival of economic activities during the period under review.
FED collections were up 14pc to Rs197bn as against Rs173bn last year. The target for July-February FY22 was set at Rs205bn, which was missed by Rs8bn.
An official FBR announcement said that these figures would further improve before the close of the day and after book adjustments have been taken in to account.
“FBR has introduced a number of innovative interventions both at policy and operational level with a view to maximise revenue potential through digitisation, transparency, and taxpayers’ facilitation. This has not only resulted in ensuring the ease of doing business but also translated in a healthy and steady growth in revenue collection,” the statement said.
Likewise, the incumbent top FBR leadership has launched a new culture of clean taxation with a clear focus on collecting only the fair tax and not holding up refunds which are due to be paid. This has not only fast tracked the process of bridging the trust deficit between FBR and Taxpayers but also ensured the much-needed cash liquidity for business community, the FBR statement further said.
Source: Dawn
