| Welcome to Global Village Space

Wednesday, May 22, 2024

Disappointment expressed on FBR’s increased net revenue

The net collection from customs duty was Rs.82 billion in August, up from Rs.77 billion in the same month preceding year, representing a 6.49 percent increase.

The Federal Board of Revenue (FBR) revealed that its net revenue increased by over 9 percent to Rs489bn in August, surpassing the Rs483bn target set for the month.

In the first two months of the ongoing fiscal year, the revenue collection increased by 2.37 percent at Rs.948bn against the target of Rs.926bn. Collected net revenue of Rs.948bn showed an increase of 10 percent on year-on-year basis, according to Arif Habib Limited.

Read more: FBR’s revenue collection exceeds target in FY-22

On the other hand, gross collection rose from Rs.462 billion in Aug last year to Rs.526, with 14 percent increase. Similarly, the refunds disbursed during August were Rs.37bn compared to Rs.14.3bn paid last year, an increase of 161 percent.

Moreover, the net collection under income tax soared 33 percent to Rs.165bn in August against Rs.124bn last year. The sales tax collection is Rs218bn this year against Rs.223bn last year, showing a drop of 2.24 percent.

The net collection from customs duty was Rs.82 billion in August, up from Rs.77 billion in the same month preceding year, representing a 6.49 percent increase. The federal excise duty collection was Rs.24 billion, up from Rs.23 billion in the preceding year, a 4.34 percent rise.

However, increase in FBR’s tax collection has been regarded as “disappointing” on Twitter by an economist Muzammil Aslam belonging to Pakistan Tehreek-I-Insaf party.

“Disappointed tax collection after 35 percent devaluation and 25 percent inflation. Tax collection grew by only 9 percent,” he stated.

In August, Pakistan’s inflation rose for the sixth consecutive month to a new high, with the devastating floods threatening to push prices even higher. In addition, Pakistan is struggling with declining rupee and widening fiscal and current account deficits, and the rupee has lost 18 percent of its value since December 21.

Government has imposed heavy taxes on the business community as well as general public which has created hurdles for all. Instead of widening the tax net, it has focused to enhance tax collection from existing taxpayers.

Though tax collection has been increased but it has caused massive destruction at micro as well as macro level.