LAHORE: The country’s leading tax experts have lauded the Federal Board of Revenue (FBR) for exceeding the FY20 revenue collection target of Rs3,908 billion by Rs92 billion given the adverse economic condition created due to Covid-19.
Talking to Profit, tax consultant, Dr Ikramul Haq appreciated FBR’s performance and said that the FBR had exceeded the tax collection target by Rs92 billion and collected Rs4,126 billion at a time when businesses are closed, imports are largely suspended and duties have been slashed to provide ease to businesses.
He further added that the FBR has paid Rs122 billion in refunds of sales tax and income tax for FY20 compared to last year’s refunds of Rs53 billion to Rs69 billion.
According to Ikramul Haq during FY20, FBR paid Rs95 billion in sales tax refunds compared to just Rs21 billion paid in FY19. Additionally, an amount of Rs70 billion was paid to clear outstanding refunds through the Technical Supplementary Grant (TSG).
He further added that these refunds had previously been blocked by Pakistan Muslim League Nawaz (PMLN) government.
“It is unfair to say that FBR’s collection is overstated by paying through TSG,” he said.
Tax consultant Huzaima Bukhari said that the most admirable step by the FBR was its strict adherence to collecting only due taxes and not taking any advances.
She added that the new FBR member operations had earlier given clear instructions to the tax collection authority to not force taxpayers to pay taxes in advance.
Bukhari further said that FBR had broken away from past practices and had paid tax refunds till the last day of FY20.
She maintained that collection figures reflect net tax collection which registered a growth of 4.3 per cent over last year when growth stood at a negative 0.4 per cent.
“It is an extraordinary feat by FBR considering that the country has been under strict lockdown during April and May,” she said.