The Federal Board of Revenue (FBR) needs Rs1,321 billion in two months of the current fiscal year to meet the revised annual revenue target of Rs6,179 billion.
As per the details, the tax department has collected net revenue of Rs4,858 billion during July, 2021-April, 2022 of the current Financial Year 2021-22, which has exceeded the target by Rs239 billion.
This represents a growth of about 28.6 per cent over the collection of Rs3,778 billion during the same period, last year.
The net collection for the month of April 2022 realized Rs480 billion representing an increase of 24.9 per cent over Rs384 billion collected in April 2021.
On the other hand, the gross collections increased from Rs3,981 billion during July, 2020-April, 2021 to Rs5,122 billion in the current Financial Year July 2021- April 2022, showing an increase of 28.7 per cent. Likewise, the number of refunds disbursed during April 2022 was Rs34.6 billion while in April 2021 the refunds disbursed were Rs19.6 billion, registering an increase of 76.2 per cent.
Similarly, refunds worth Rs264 billion have been disbursed during July 2021- to April 2022 compared to Rs203 billion paid last year, showing an increase of 30.1 per cent.
It is pertinent to mention that the ongoing unprecedented and constant growth trajectory in revenue collection has been achieved despite massive tax relief given by the government on various essential items to the common man.
For the first time ever in the country’s history, Sales Tax on all POL products has been reduced to zero which cost FBR Rs45 billion in April, 2022. Likewise, the revenue impact of Sales Tax exemptions provided to Fertilizers, Pesticides, Tractors, Vehicles, and Oil & Ghee comes to Rs18 billion per month.
Similarly, zero-rating on Pharmaceutical products has cost FBR Rs10 billion in Sales Tax during the month of April, 2022. Thus, in aggregate, these relief measures have impacted revenue collection by approximately Rs73 billion during the month of April, 2022. Furthermore, the political uncertainty and import compression also negatively impacted revenue collection during April.