ISLAMABAD – The net revenues collection by the Federal Board of Revenue(FBR) increased by 29.1 percent during the first three quarters of thecurrent fiscal year as compared to the corresponding period of last year,the board reported here on Thursday.
According to provisional figures released by the board, FBR collectedRs4,382 billion during July-March (2021-22) as compared to the collectionof Rs3,394 billion during July-March (2020-21).
During the month of March, the board collected Rs 575 billion, representingan increase of 20.5 percent over Rs 477 billion collected in March 2021.
On the other hand, the gross collections increased from Rs 3,577 billionlast year to Rs 4,611 billion during the 3 quarters of current financialyear, showing an increase of 28.9%.
Likewise, the amount of refunds disbursed during March, 2022 was Rs.31.9billion compared to disbursement of Rs.26.3 billion in March last year,registering an increase of 21.3%.
Similarly, refunds worth Rs 229 billion have been disbursed during July2021 to March 2022 compared to Rs 183 billion paid last year, showing anincrease of 25.0%.
It is pertinent to mention that the ongoing unprecedented and constantgrowth trajectory in revenue collection has been achieved despite massivetax relief given by the government on various essential items to commonman.
For the first time in the country’s history, Sales Tax on all POL productshas been reduced to zero which cost FBR Rs. 45 Billion in March, 2022.
Likewise, the revenue impact of Sales Tax exemptions provided tofertilizers, pesticides, tractors, vehicles, and oil & ghee come to Rs18billion per month.
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Similarly, zero rating on pharmaceutical products has cost FBR Rs.10Billion in Sales Tax during the month of March, 2022.
Thus, in aggregate these relief measures have impacted revenue collectionby approximately Rs. 73 Billion during the month of March, 2022.Furthermore, the political uncertainty and import compression alsonegatively impacted revenue collection during March.
The board mentioned that it had introduced a number of innovativeinterventions both at policy and operational level with a view to maximizerevenue potential through digitization, transparency, and taxpayers’facilitation.
This has not only resulted in ensuring the ease of doing business but alsotranslated in a healthy and steady growth in revenue collection, accordingto statement issued by the board.
Likewise, the incumbent top leadership of FBR has launched a new culture ofclean taxation with a clear focus on collecting only the fair tax and notholding up refunds which are due to be paid.
This has not only fast tracked the process of bridging the trust deficitbetween FBR and taxpayers but also ensured the much-needed cash liquidityfor business community.
That’s precisely why FBR continues to surpass its assigned revenue targetsdespite challenges and price stabilization measures adopted by thegovernment, the statement added.
