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Wednesday, May 22, 2024

FBR surpasses the monthly budgetary target by Rs 4 billion

The Federal Board of Revenue (FBR) has collected Rs 537 billion during January 2023 against the monthly budgetary target of Rs533 billion, reflecting a growth of Rs 4 billion.

The provisional tax collection of FBR remained at Rs 3,965 billion in the first seven months of the current financial year against the given target of Rs 4,206 billion for July-January (2022-23), reflecting a default of Rs 241 billion. However, FBR has recently announced that it exceeded the tax collection target by Rs 4 billion in January this year.

According to FBR, the tax machinery demonstrated exemplary revenue collection performance last month and has not only achieved the monthly budgetary target of Rs 533 billion but exceeded it by Rs 4 billion. The provisional figure suggests that the Board collected Rs 537 billion in January 2023 with an impressive growth of 23% compared to January 2022.

Additionally, the third quarter (January- March) of the current financial year has started with an impressive performance as FBR has collected Rs 3,965 billion against Rs 3,367 billion collected last year. Similarly, the progress of 18% is seen compared to the previous financial year, and the team FBR is optimistic to meet the annual budgetary target of Rs7,470 billion despite economic challenges.

Furthermore, direct tax collection has also increased in the current year and has shown a growth of 48%, which largely reflects the government’s policy of shifting the tax burden to wealthy and affluent segments of society. The growth in domestic taxes is also attributed to FBR’s administrative and enforcement measures, which have shown the progress of 59% compared to 50% last year.

It is pertinent to mention that tax collection from Customs Duty has also increased by 16 % in January 2023 as compared to the same month last year.

In addition to this, FBR has issued refunds of Rs 208 billion for the exporters’ liquidity problems during the first seven months of the current financial year against Rs 183 billion in the previous year. This has shown a significant increase of 14 % than the previous year’s issued refunds.

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Despite surpassing the monthly target, the country is still battling with record-high inflation and economic crisis.

Similarly, the progress of 18% is seen compared to the previous financial year, and the team FBR is optimistic to meet the annual budgetary target of Rs7,470 billion despite economic challenges.

Furthermore, direct tax collection has also increased in the current year and has shown a growth of 48%, which largely reflects the government’s policy of shifting the tax burden to wealthy and affluent segments of society. The growth in domestic taxes is also attributed to FBR’s administrative and enforcement measures, which have shown the progress of 59% compared to 50% last year.

It is pertinent to mention that tax collection from Customs Duty has also increased by 16 % in January 2023 as compared to the same month last year.