ISLAMABAD – The Federal Board of Revenue (FBR) collected net revenues ofRs.4,858 billion during the first ten months of the current fiscal year(July-April 2021-22), showing growth of 28.6 percent over the collectionof Rs.3,778 billion during the corresponding period of last year.
According to provisions figures shared by the board here on Saturday, thecollection during July-April (2021-22) also exceeded the target set for theperiod by Rs.239 billion.
The net collection for the month of April, 2022 stood at Rs. 480 billionrepresenting an increase of 24.9 % over Rs. 384 billion collected in April,2021.
On the other hand, the gross collections increased from Rs. 3,981 billionduring July-April (2020-21) to Rs 5,122 billion in current financial yearJuly, showing an increase of 28.7%.
Likewise, the amount of refunds disbursed during April, 2022 was Rs.34.6Billion while in April, 2021 the refunds disbursed were Rs.19.6 Billion,registering an increase of 76.2%.
Similarly, refunds worth Rs 264 billion have been disbursed from July-April(2021- 2022) compared to Rs203 billion paid last year, showing an increaseof 30.1%.
It is pertinent to mention that even though FBR had agreed to a target ofRs. 6100 billion with the International Monetary Fund (IMF), the same wasnever made a target of FBR.
Now FBR would need Rs. 484.5 billion per month to achieve the initialtarget of Rs.5829 billion and Rs. 621 billion each in May and June toachieve the revised target of Rs. 6100 billion.
The incumbent government is fully determined to collect Rs. 6100 billion inthis fiscal year, said FBR statement.
The ongoing unprecedented and constant growth trajectory in revenuecollection has been achieved despite massive tax relief given by thegovernment on various essential items to common man.
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For the first time ever in the country’s history, Sales Tax on all POLproducts has been reduced to zero which cost FBR Rs. 45 Billion in April,2022. Likewise, the revenue impact of Sales Tax exemptions provided tofertilizers, pesticides, tractors, vehicles, and oil & ghee comes to Rs.18billion per month.
Similarly, zero rating on pharmaceutical products has cost FBR Rs. 10billion in Sales Tax during the month of April, 2022. Thus, in aggregatethese relief measures have impacted revenue collection by approximately Rs.73 Billion during the month of April, 2022.
Furthermore, the political uncertainty and import compression alsonegatively impacted revenue collection during April.
It is worth sharing that FBR has 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.
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.
