ISLAMABAD: Planning, Development and Special Initiatives Minister Asad Umar said on Friday that the Federal Board of Revenue (FBR) surpassing the tax collection target for July 2020 reflects a sharp bounce back of Pakistan’s economy.
This was due to a highly successful Covid-19 control effort, he maintained.
“This also reflects a sharp bounce back of Pakistan’s economy due to a highly successful Covid-19 control effort, allowing economic activities to resume, while at the same time other countries continue to struggle,” he added.
Excellent FBR tax collection in july, Rs. 57 bn more than target, reflect good performance of new FBR team & a sharp bounce back of Pak economy due to a highly successful covid control effort , allowing economic activties to resume, while other countries continue to struggle
— Asad Umar (@Asad_Umar) July 31, 2020
Earlier on Thursday, the Federal Board of Revenue announced that it collected Rs300 billion revenue in July 2020, overshooting the assigned revenue target of Rs243 billion by Rs57 billion.
According to the revenue collection data for July 2020, the Inland Revenue overshot the target by Rs52 billion, whereas the Customs Wing exceeded the target by Rs5 billion despite Rs25 billion relief given in customs duty.
According to FBR, in order to redress the adverse economic impact of Covid-19 on businesses, an unprecedented amount of refunds amounting to Rs15 billion were disbursed during July 2020, as compared to refunds of Rs7 billion during July 2019.
Sales Tax refunds are being issued under a centralized and automated system called FASTER which is clearing refunds to exporters within 72 hours for the first time as committed by the government in July 2020.