FBR tax collection crosses Rs6 trillion in current fiscal year
ISLAMABAD – For the first time, the Federal Board of Revenue (FBR)’s tax collection has crossed the physiological barrier of Rs6 trillion during current fiscal year (with two days still to go).
The FBR spokesperson on Tuesday said that the FBR has collected Rs6 trillion during current fiscal year. However, the FBR has two more days, which would further increase its tax collection. “The FBR needs another Rs100 billion to surpass the revised upward revenue collection target for the outgoing fiscal year,” a senior FBR official said. He said that the government would easily achieve the revised tax collection target of Rs6.1 trillion. The FBR has further two days i.e. June 29 and June 30 to finish the fiscal year 2021-2022. The FBR has achieved its initial target. Its initial tax-collection target for the current fiscal year was Rs5.83 trillion in the annual budget for year 2021-22, which was later upward revised to Rs6.1 trillion on the directions of the International Monetary Fund (IMF).
According to the Rs6 trillion breakup of revenue collection made available, the FBR collected Rs2.21 trillion as income tax; Rs2.77 trillion as sales tax; Rs320 billion as federal excise duty and Rs1.01 trillion as customs duty. The gross collection of the FBR till Midday of June 28, 2022 comes at Rs6.305 trillion. The revenue body granted an amount of Rs305 billion as refunds that makes the net revenue collection at Rs6 trillion. The FBR has achieved around 98.3 per cent of the target so far. The comparative numbers with the last fiscal year, the revenue collection targets in income tax, sales tax, federal excise duty and customs duty have been achieved as 98 per cent, 98 percent, 95 per cent and 102 percent, respectively.
FBR needs another Rs100 billion to surpass revised upward revenue collection target for outgoing fiscal year, a senior FBR official says
It would give boost to the FBR for meeting tax collection target in the next fiscal year. In the annual budget 2022-23, the government has increased the tax collection target for the Federal Board of Revenue (FBR) to Rs7.004 trillion for the next fiscal year from Rs6.1 trillion of the current year. However later, the target was upward revised. Pakistan has increased the proposed tax collection target to Rs7.450 trillion for the next fiscal year from earlier Rs7.004 trillion.
According to the FBR, 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 costs the FBR Rs 45 Billion on monthly basis. It is also worth sharing that the 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. This has not only resulted in ensuring transparency, taxpayers’ facilitation, and the ease of doing business but also translated in a healthy and steady growth in revenue collection.