ISLAMABAD - Federal Board of Revenue (FBR) has exceeded the ten-month tax collection target by Rs.143 billion.
According to the provisional information, FBR has collected net revenue of Rs3780 billion during Jul-April period, which has exceeded the target of Rs3637 billion by more than Rs143 billion. This represents a growth of about 14% over the collection of Rs3320 billion during the same period last year.
The net collection for the month of April was Rs384 billion, against a required increase of Rs242 billion, representing an increase of 57% over Rs240 billion collected in April 2020 and 159% of the target. The year-on-year growth of 57% is unprecedented particularly as it is realized on the heel of 46% in March. These figures would further improve before the close of the day and after book adjustments have been taken into account. On the other hand, the gross collections increased from Rs 3438 billion during this period last year to Rs3976 billion, showing an increase of 16%. The amount of refunds disbursed was Rs195 billion compared to Rs118 billion paid last year, showing an increase of 65%. This is reflective of FBR’s resolve to fast-track refunds to prevent liquidity shortages in the industry.
The improved revenue performance is a reflection of growing economic activities in the country despite facing the challenge of third wave of COVID-19. However, in the closing days of the April, revenue collection slowed down considerably as measures to fight COVID were put in place. Collections in May and June would be affected in case fighting pandemic reduces the space for economic activities.
Meanwhile, FBR’s efforts to broaden the tax base are expending a pace. Early signs suggest such efforts are bearing fruits. As on 1-5-2021, income tax returns for tax year 2020 have reached 2.9 million compared to 2.6 million in tax year 2019, showing an increase of 12%. The tax deposited with returns was Rs50.6 billion compared to only Rs33.1 billion, showing an increase of 53%.