FBR makes history by exceeding upward revised target of Rs6.1tr for FY2021-22
ISLAMABAD – For the first time in recent history, the Federal Board of Revenue (FBR) has exceeded its upward revised tax collection target of Rs6.1 trillion during the fiscal year 2021-22 despite collecting reduced General Sales Tax on oil products.
The FBR has collected more than Rs6.110 trillion during the previous fiscal year (ended on June 30) against the upward revised target of Rs6.1 trillion. The FBR’s initially tax collection target for the last financial 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). However, the FBR has comfortably achieved the target.
“Congratulations to Chairman FBR & his team on exceeding the revised tax target of Rs 6.1tr for FY 2021-22. FBR collected Rs 763b in June 22 v/s Rs 580b in June 21, registering a 32% growth. Refunds of Rs 39b issued in June 22 v/s Rs 27b in June 21, increase of 44%,” said Federal Minister for Finance and Revenue Miftah Ismail on twitter. He appreciated the FBR workforce for its outstanding performance in this quarter. During 4th qtr, tax collection of Rs 1741b v/s Rs1351b last year, an increase of 29%. Refunds of Rs 105b issued during 4th qtr of CFY against Rs 68b in the same period last year, an increase of 55 percent.
FBR collected Rs763 billion in June 22 v/s Rs580 billion in June 21, registering 32% growth
According to ministry of finance, growth momentum in tax collection has been realized largely on the back of import-related taxes due to a sharp rise in import volumes. The government had announced measures to restrict imports in an effort to relieve external account pressures. With these measures in place, meeting the FBR tax collection target for FY2022 was a daunting task. In the wake of these challenges, FBR had strived hard to improve domestic tax collection through various policy and operational level efforts. It is worth mentioning that FBR has launched a new culture of clean taxation with a focus on collecting only the fair tax and not holding up refunds that are due to be paid. This has ensured the much-needed cash liquidity for the business community. All these measures would be supportive in achieving a healthy and steady growth in revenue collection, going forward. 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 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 cost FBR Rs. 45 billion on monthly basis. It is also worth sharing that 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.