The Federal Board of Revenue (FBR) has released the provisional revenuecollection figures for the month of March 2021.
The net collection for the month of March was Rs. 475 billion, against arequired increase of Rs. 367 billion, representing an increase of 46% overRs. 325 billion collected in March 2020 and 129% of the target. Theyear-on-year growth of 46% is unprecedented. These figures would furtherimprove before the close of the day and after book adjustments have beentaken into account.
According to the provisional information, FBR has collected net revenue ofRs.3394 billion during the July-March period, which has exceeded the targetof Rs. 3287 billion by more than Rs.100 billion. This represents a growthof about 10% over the collection of Rs. 3076 billion during the same periodlast year.
On the other hand, the gross collections increased from Rs. 3178 billionduring this period last year to Rs. 3571 billion this year, showing anincrease of 13%. The number of refunds disbursed was Rs. 177 billioncompared to Rs. 102 billion paid last year, showing an increase of 74%.This is reflective of FBR’s resolve to fast-track refunds to preventliquidity shortages in the industry.
The improved revenue performance is a reflection of growing economicactivities in the country despite facing the challenge of the third wave ofCOVID-19. During April-June 2021, it is expected that this revenueperformance would be improved substantially compared to 2020 when economicactivities were disrupted due to COVID.
Meanwhile, FBR’s efforts to broaden the tax base are expanding apace. Earlysigns suggest such efforts are bearing fruits. As of 28-2-2021, income taxreturns for the tax year 2020 have reached 2.8 million compared to 2.6million last year, showing an increase of 8%. The tax deposited withreturns was Rs. 51 billion compared to only Rs. 33.0 billion, showing anincrease of 54%.——————————
It may be recalled that last year the final date for submission to returnswas 28th February. FBR’s decision to adhere to 8th December as the lastdate has been vindicated as more returns and higher tax payments have beenrecorded during the tax year 2020 compared to 2019. Moreover, a number of123,680 new Income Tax Returns have been received for Tax Year 2020resulting in the collection of additional tax of Rs. 511 million.
Read Top Stories
Sales tax returns for the period from July 2020 to February 2021 havereached 179,584 whereas they were 167,769 in the corresponding months lastyear, showing an increase of 7.04 %. The sales tax paid with returns is 624billion this year which was 536 billion last year, showing an increase of16.41 %.
FBR has also released information about Tier-I retailers who have beenintegrated with POS system. According to the information, 10283 salespoints have been integrated with the Point of Sales Linked Invoicing System.
Pakistan Customs has initiated a focused counter-smuggling drive. DuringMarch 2021, smuggled goods worth Rs.3.634 billion have been seized while inMarch 2020; smuggled goods worth Rs. 2.74 billion were seized, thus showinga monthly increase of 39%.
Similarly, during the last 9 months (July 2020-Mar 2021) of the currentfinancial year smuggled goods worth Rs. 45.98 billion have been seized ascompared to Rs. 27.7 billion from July 2019 to March 2020 of the lastfinancial year thus showing an increase of 66 %. Moreover, the value ofseized goods of Rs. 46 billion in 9 months of current FY has crossed thetotal value of seized goods of last year. In FY 2019-20, smuggled goodsworth Rs.36 billion were seized.
Directorate General of Intelligence & Investigation-IR showed commendableperformance from July to March 2021. During this period, DirectorateGeneral forwarded 846 Investigation Reports to the field formationsinvolving revenue amounting to Rs. 147 billion. Directorate General filed136 complaints under the Anti-Money Laundering Act, 2010 against 175accused persons involving revenue of Rs. 50 billion during the period fromOctober 2018 to March 2021. Further, Directorate General seized 5057cartons of illicit cigarettes containing 50,570,000 cigarette sticks duringJuly to March 2021.
