ISLAMABAD: Tax collection of Federal Board of Revenue during the first seven months (July-January) of financial year 2017-18 was recorded at over Rs2 trillion.
FBR failed in meeting its collection target by Rs74 billion, as rise in collection slowed down to 17.7 percent during the above-mentioned period, reported an English daily.
During the first seven months of FY 2017-18, the FBR’s provincial net revenue collection reached over Rs2 trillion, said the tax regulator on Wednesday. In comparison to same period last year, the revenue collection rose by 17.7 percent or Rs300 billion.
The parliament has set a target of Rs4,013 trillion tax collection during FY 2017-18 which requires 19.2 growth. The FBR for July-January period set a target of Rs2.074 trillion for tax collection.
As per FBR, provisional collection for January 2018 excluding collection on account of book adjustment was recorded at Rs272 billion. The book adjustment charges according to FBR could stand between Rs2 to Rs3 billion.
Compared to January 2017, tax collection of FBR during the first month of 2018 grew 19 percent and it said this was very promising.
The major reason attributable for this major rise in customs duty collection was due to increased regulatory duties on non-essential items the government placed in October to restrict imports.
Share of customs duty collection in total tax collection rose 15 percent by end of last financial year, revealed the Fiscal Policy Statement 2017-18. And this registered additional rise of 16.5 percent during the first seven months of FY 2017-18.
The latest revenue collection figures have disappointed and FBR may fail in achieving its goal of annual tax collection and fiscal deficit targets.
The tax regulator was required to attain 51.7 percent collection target during the first seven months of FY 2017-18, as per officials from Ministry of Finance.
As per FBR calculations, the depreciation of the rupee against the dollar would result in an additional benefit of minimum Rs55 billion. Aside that, duty collection would also rise by Rs25 billion due to enforcement of regulatory duty.