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Friday, January 27, 2023

FBR collects Rs 5.4 trillion in taxes

The Federal Board of Revenue (FBR) collected Rs5.35 trillion in taxes in 11 months of the current fiscal year, leaving it with the task of collecting another Rs750 billion in June to achieve the revised target that had been set after imposing the mini-budget.

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The revenue collection by the Federal Board of Revenue (FBR) witnessed the growth of 28.4 percent during the first eleven months of the current fiscal year as compared to the corresponding period of last year, FBR reported Tuesday.

According to provisional figures released by the board, the net revenue collection grew to Rs. 5,349 billion during July-May (2021-22) as against the collection of Rs.4,164 billion during July-May (2020-21).

The provisional figures reported will further improve after the closure of payment receipts and reconciliation with the State Bank of Pakistan (SBP).

Read more: FBR to investigate MG Motors under-invoicing scandal

During the month of May 2022, the net collection was recorded at Rs.490 billion compared to Rs.387 billion in May 2021, showing growth of in May rose by 26.8 percent.

On the other hand, the gross collections increased from Rs. 4,389 billion during July-May (2020-21) to Rs 5,644 billion during July0May (2021-22), showing an increase of 28.6%.

Likewise, the amount of refunds disbursed during May 2022 was Rs.30.4 billion while in May 2021 the refunds disbursed were Rs.21.1 Billion, registering an increase of 44.3%. Similarly, refunds worth Rs 295.5 billion have been disbursed during July, 2021- May, 2022 compared to Rs 224.2 billion paid last year, showing an increase of 31.8%.

The FBR statement said, the ongoing unprecedented and constant growth trajectory in revenue collection has been achieved despite massive tax relief given by the government on various essential items to common man.

For the first time ever in the country’s history, Sales Tax on all POL products has been reduced to zero which cost FBR Rs. 45 Billion in May, 2022.

It is also worth sharing that FBR has introduced a number of innovative interventions both at policy and operational level with a view to maximize revenue potential through digitization, transparency, and taxpayers’ facilitation.

Read more: This is how FBR reforming itself

This has not only resulted in ensuring transparency, taxpayers’ facilitation, and the ease of doing business but also translated in healthy and steady growth in revenue collection.

Likewise, the incumbent top leadership of FBR 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 the business community.

Read more: FBR takes Telenor to court over tax default

That’s precisely why FBR continues to surpass its assigned revenue targets despite challenges and price stabilization measures adopted by the government, it added.


APP with additional input by GVS