By Staff Reporter
ISLAMABAD: The Federal Board of Revenue (FBR) has surpassed its annual tax collection target by topping up the government’s coffers with Rs6,125 billion in the outgoing fiscal year 2021-22 ending on June 30, 2022, latest numbers showed late on Thursday, mainly because of increase in imports and massive devaluation of the exchange rate.
The FBR made more than 52 percent collection at the import stage, while GST collection on the domestic stage decreased.
Federal Minister for Finance Miftah Ismail in a tweet said, “As per PM Shehbaz Sharif’s instructions, a few days ago we paid all processed DLTL claims pending for the last three years. Today FBR paid all processed Faster, Sales Tax, Income Tax and Export Rebate claims that were due. Every single processed claim. Alhamdulillah”.
The FBR’s tax collection was revised upward from Rs5.928 trillion to Rs 6.125 trillion under the IMF conditions on the eve of completion of 6th review under the $6 billion Extended Fund Facility (EFF) when the government failed to fetch petroleum levy in the first half of the outgoing fiscal year. Then, the target of petroleum levy was revised downward from Rs 610 billion and the FBR’s target was jacked up to Rs6.1 trillion.
The increased imports bill which is going to touch $78 billion for the outgoing fiscal year helped the FBR to increase its tax collection and flaunt its desired tax collection target.
The GST on the domestic stage, which shows economic activities and consumption power of the masses, could not show improvements during the outgoing financial year.
Late on Thursday night FBR released the provisional revenue collection figures for the fiscal year 2021-22.
FBR’s collection during the current fiscal year (July 21-June 22) exceeded the upward revised target of Rs6,100 billion by Rs25 billion.
This represents a massive growth of about 29.1 percent over the collection of Rs4,744 billion during the same period, last year. Likewise, the gross revenue collection increased from Rs4,996 billion during last year to Rs6,460 billion this year, up 29.3 percent. One of the key features of this outstanding performance by FBR is reflected in the significant increase in direct taxes that registered a growth of 32 percent over the last year. This is in line with the policy of the incumbent government to enforce taxation on income earned thereby reducing indirect incidence of taxation.
Furthermore, the net income tax collection this year reached Rs2,278 billion against Rs1,731 billion last year, whereas sales tax collection was Rs2,525 billion against Rs1,983 billion last year. The net collection from customs duty arrived at Rs1,000 billion this year against Rs747 billion last year, while the collection from federal excise duty was Rs322 billion this year against Rs284 billion last year.
Similarly, the net collection of Rs1,741 billion in the 4th quarter of this fiscal year rose by 31.7 percent from Rs1,351 billion amassed in the 4th quarter last year despite many challenges. The net collection for the month of June 2022 hit Rs763 billion, up 28.9 percent over Rs580 billion collected in June last. The year-on-year growth of 29.1 percent is unprecedented. These figures would further improve before the close of the day and after book adjustments have been taken into account.
On the other hand, the amount of refunds of Rs335 billion, disbursed this year increased 33.3 percent from Rs251 billion paid last year. Likewise, refunds of Rs105 billion issued during the 4th quarter this year jumped by a massive 55.2 percent compared to Rs.68 billion in the same period last year.
Similarly, refunds of Rs39 billion issued during June 2022 surged 43.8 percent versus Rs27 billion in June 2021. In the month of June, the refunds were 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 retail sector has integrated a total number of 10,611 POS machines of 4563 Tier-1 Retailers across the country. Total of 425 million tax invoices were generated by Tier-1 Retailers integrated with POS.
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