FBR meets revised revenue target of Rs6.1tr

The Federal Board of Revenue (FBR) has collected net revenue of Rs6,125 billion during the current fiscal year (July 21-June 22), which has exceeded the upward revised target of Rs6,100 billion by Rs25 billion.

This represents a massive growth of about 29.1% over the collection of Rs4,744 billion during the same period, last year.

Likewise, the gross revenue collection increased from Rs4,996 billion last year to Rs6,460 billion this year, showing an increase of 29.3%. 

One of the key features of this outstanding performance by FBR is reflected in the significant increase in direct taxes which has registered a growth of 32% over the last year. 

This is in line with the policy of the incumbent government to enforce taxation on income earned thereby reducing the indirect incidence of taxation. 

Furthermore, the net collection from Income Tax during year is Rs2,278 billion against Rs1,731 billion last year whereas the sales tax of Rs2,525 billion has been collected this year against Rs1,983 billion last year.

The net collection from Customs Duty is Rs1,000 billion this year against Rs747 billion last year while the collection from Federal Excise Duty is Rs322 billion this year against Rs284 billion last year.  

Similarly, the net collection of Rs1,741 billion during the 4th Quarter of the current financial year against Rs1,351 billion collected in the 4th Quarter last year, represents an increase of 31.7% despite many challenges. 

The net collection for the month of June 2022 is Rs763 billion representing an increase of 28.9% over Rs580 billion collected in June 2021. 

On the other hand, the number of refunds of Rs335 billion disbursed during this year compared to Rs251 billion paid last year, reflects an increase of 33.3%. Likewise, refunds of Rs105 billion issued during the 4th Quarter this year against Rs68 billion issued in the 4th Quarter last year, increased by 55.2%.

Similarly, refunds of Rs39 billion issued during June 2022 against Rs27 billion in June 2021 increased by 43.8%. In the month of June, the refunds have been issued to more than 5,800 taxpayers as compared to 3,100 in June last year. This is reflective of FBR’s resolve to fast-track refunds to prevent liquidity shortages in the industry. The robust revenue performance is even more significant due to effective enforcement by field formations.

It is pertinent to mention that FBR’s POS system to document the retail sector has integrated a total number of 10,611 POS machines of 4,563 Tier-1 retailers across the country. A total of 425 million tax invoices were generated by Tier-1 retailers integrated with POS. A total number of six POS computerized draws have been held in which prize money worth Rs318 million was disbursed among 6,042 lucky winners. It is heartening to inform that the number of FBR invoices is increasing as a result of effective monitoring by FBR despite the resource crunch.