ISLAMABAD – The Federal Board of Revenue (FBR) has exceeded the taxcollection target by Rs176 billion in eleven months of the current fiscalyear.
According to the provisional information, FBR has collected net revenue ofRs 4,170 billion during Jul-May period, which has exceeded the target ofRs3,994 billion by Rs176 billion. This represents a growth of about 18 percent over the collection of Rs3, 549 billion during the same period lastyear.
The government in consultation with the International Monetary Fund (IMF)had downward revised the tax collection target to Rs4.69 trillion fromRs4.96 trillion. The FBR would have to collect Rs 527 billion in last month(June) to achieve the revised tax collection target. It is worth mentioninghere that government had restricted the budget deficit in first nine months(July to March) of the year 2021-22 mainly due to improved tax collection.The country’s expenditures stood at Rs6.64 trillion as against the revenuesof Rs4.99 trillion leaving budget deficit at Rs1.65 trillion or 3.6 percent of the GDP, according to the latest data of ministry of finance.
The net collection for the month of May was Rs 386 billion, against arequired increase of Rs 214 billion, representing an increase of 69 percent over Rs 229 billion collected in May 2020 and 168 per cent of thetarget. The year-on-year growth of 69 per cent is unprecedentedparticularly as it is realized on the heel of 57 per cent in April. Thesefigures would further improve before the close of the day and after bookadjustments have been taken into account.
FBR collected net revenue of Rs4,170 billion during Jul-May period, whichhas exceeded target of Rs3,994 billion by Rs176 billion
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On the other hand, the gross collections increased from Rs 3,674 billionduring this period last year to Rs 4,386 billion, showing an increase of19.4 per cent. The amount of refunds disbursed was Rs 216 billion comparedto Rs 125 billion paid last year, showing an increase of 42.3 per cent.
This is reflective of FBR’s resolve to fast-track refunds to preventliquidity shortages in the industry. The improved revenue performance is areflection of growing economic activities in the country despite facing thechallenge of third wave of COVID-19. However, during the Eid holidays,revenue collection slowed down considerably.
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