FBR’s revenue collection exceeds target in FY-22

FBR has created history by exceeding the revenue target set for the current fiscal year and collected tax of Rs. 6,125 billion during July-June (2021-22). According to provisional figures released by the board, the collection exceeded the revised target of Rs. 6,100 billion by Rs. 25 billion, showing a massive growth of about 29.1 percent over the collection of Rs. 4,744 billion during the same period last year.

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The Federal Board of Revenue (FBR) has created history by exceeding the revenue target set for the current fiscal year and collected tax of Rs. 6,125 billion during July-June (2021-22). According to provisional figures released by the board, the collection exceeded the revised target of Rs. 6,100 billion by Rs. 25 billion, showing a massive growth of about 29.1 percent over the collection of Rs. 4,744 billion during the same period last year.

The gross revenue collection also increased from Rs. 4,996 billion during last year to Rs. 6,460 billion this year, showing an increase of 29.3 percent. One of the critical features of this outstanding performance by FBR is reflected in the significant increase in direct taxes, which has registered a growth of 32 percent over the last year.

Read more: PTI lauded as FBR breaks tax collection record

This is in line with the incumbent government’s policy to enforce taxation on income earned, thereby reducing the indirect incidence of taxation. Furthermore, the net collection from Income Tax during the year is Rs. 2,278 billion against Rs. 1,731 billion last year, whereas the sales tax of Rs. 2,525 billion has been collected this year against Rs. 1,983 billion last year. The net collection from Customs Duty is Rs. 1,000 billion this year against Rs. 747 billion last year, while the collection from Federal Excise Duty is Rs. 322 billion this year against Rs. 284 billion last year.

Similarly, the net collection of Rs. 1,741 billion during the 4th quarter of the current financial year against Rs. 1,351 billion collected in the 4th quarter last year represents an increase of 31.7 percent despite many challenges. The year-on-year growth of 29.1 percent is unprecedented, mainly as it is realized on the heel of 31.7 percent growth in the 4th quarter. These figures would further improve before the close of the day and after book adjustments have been taken into account.

The robust revenue performance is even more significant due to effective enforcement by field formations. It is pertinent to mention that FBR’s POS System to document the retail sector has integrated a total number of 10,611 POS machines of 4,563 Tier-1 Retailers across the country.

Read more: Tax gap reaches Rs.3000 billion: FBR

Another watershed initiative by FBR to capture Large Scale Manufacturing (LSM) across the country through Track & Trace System (TTS) has already started paying dividends. Sales tax collection from Sugar Sector during the current crushing season (December 2021 – March 2022) under Track and Trade System amounted to Rs. 26.03 billion as compared to the corresponding period of the previous crushing season, which stood at Rs. 19.9 billion, showing an increase of 31 percent in four months only.

Similarly, sugar production during the current crushing season was recorded at 7.85 million tons as compared to 5.67 million tons in the previous crushing season, depicting a 39.7 percent increase over the last year. The tobacco and Fertilizer sectors will also be brought under the TTS during the first quarter of Financial Year 2022-23.

Likewise, Pakistan Customs collected Rs 1 Trillion this year against Rs. 747 billion under the head of customs duty in FY 2020-21 against the assigned target of Rs. 960 billion and exceeded its target by Rs.40 billion, registering a sizable growth of 34 percent.

Read more: FBR to impose more taxes?

Similarly, the Directorate General of Intelligence & Investigation-IR showed appreciable performance from July 2021 to June 2022. During this period, 1,136 Investigation Reports and Red Alerts were forwarded to the field formations involving revenue amounting to Rs. 321 billion. 89 FIRs were lodged under Anti-Money Laundering Act, 2010, where more than Rs. 66 billion were involved. Around 9,866 cartons were seized containing 98,660,400 cigarette sticks during the year. Likewise, the Directorate General of Intelligence and Investigation (Customs) seized 877 non-duty paid/tampered Seized vehicles during the year against 671 vehicles last year.

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