ISLAMABAD-Pakistan’s customs has surpassed its monthly tax collection target by Rs1.6 billion in the month of August despite outbreak of Covid-19 that caused problems in collection.
Federal Board of Revenue (FBR) on Wednesday stated that outbreak of COVID-19 within country has caused administrative problems in collection of revenue. However, Pakistan Customs has performed tremendously well towards achievement of revenue target of customs duty assigned for the month of August, 2020. The customs duty target for the month of August was Rs.44.3 billion, but an amount of Rs.45.9 billion was collected under the head of customs duty which is 3% more than the assigned target of this month.
During the first two months (July to August) of current financial year, Pakistan Customs has collected customs duty amounting to Rs. 93.9 billion against the assigned target of Rs. 87.3 billion which is 7.5% more than the assigned target. The revenue target has been achieved despite slow clearance of imported goods at Karachi port due to heavy rains and Muharram holidays in the last week of August 2020.
It is worth mentioning here that FBR had also surpassed the two months tax collection target by Rs42 billion. According to the released information, against the assigned revenue target of Rs.551 billion, FBR has collected Rs.593 billion thus showing an increase of Rs42 billion and 108 percent of the assigned target. The revenue collection in the first two months of previous year 2019-20 was Rs582 billion whereas it is increased to Rs593 billion this year. To redress the hardships of the business community caused by Covid-19, refunds to the tune of Rs.30.6 billion have been disbursed collectively in the first two months of FY-2020, as compared to refunds of Rs.11 billion during first two months of FY-2019. Sales Tax refunds are being issued under centralized and automated system called FASTER which is clearing refunds to exporters within 72 hours for the first time as committed by the government.