FBR broke all records for maximum tax collection in 10 months

  • FBR has been consistently able to collect more revenue than its target during the current financial year.
  • The best performance in revenue collection indicates a surge in the country’s economic activity, even as it faces the third wave of Covid 19.
  • Prime Minister Imran Khan lauded the efforts of the FBR to increase tax revenue, saying that the FBR collected 384 billion rupees in April 2021.

FBR collects maximum tax in 10 months

The FBR broke all records for maximum tax collection in 10 months. According to the details, the FBR has been consistently able to collect more revenue than its target during the current financial year. It was informed that during the first 10 months of the current financial year, the FBR has managed to collect the target and Rs. 460 billion more revenue as compared to the previous year. During the first 10 months of the current financial year۔

A press release issued by the FBR states that the Federal Board of Revenue has released preliminary details of the revenue collected in the first ten months of the current financial year. Achieved net revenue of Rs. 1 billion which is 143 billion more than the target of Rs. 3637 billion set for the period.
Thus, the net revenue collected during the same period last year has increased by 14% as compared to Rs. 3320 billion.

The FBR has also released April figures. In April, revenue net collection stood at Rs 384 billion while the required increase was Rs 242 billion. Thus, the target has been increased by 159 percent and the net revenue achieved in April last year has increased by 57 percent as against Rs 240 billion. Compared to the previous year, the 57% increase in April is a historic one, which is more than the 46% increase achieved in March.

The number of products is expected to increase further by the end of the last day of April and after the book adjustment receipts. In the first ten months of the current financial year, the gross revenue stood at Rs. 3976 billion as against Rs. 3438 billion in the previous year and increased by 16%. Refunds of Rs 195 billion have been issued so far this financial year as against Rs 118 billion in the same period last year.

So far this year, refunds have increased by 65%. The expeditious payment of refunds is a testament to the FBR’s efforts to address various industries’ liquidity issues. The best performance in revenue collection indicates a surge in the country’s economic activity, even as it faces the third wave of Covid 19. Revenue collection slowed in the last days of April due to measures taken to curb the spread of the corona epidemic.

The outbreak of the Corona epidemic will harm May and June revenue collection. The FBR is working hard to increase the tax net. These efforts have begun to yield positive results. As of May 1, 2021, the number of people filing income tax returns for the tax year 2020 has reached 2.9 million as against 2.6 million in the same period last year. Thus, the number of people filing tax returns has increased by 12%.
The tax paid with tax returns stood at Rs 50.6 billion as against Rs 33.1 billion in the same period last year. Thus, tax payments have increased by 53% this year.

The FBR has also released details of major retailers connected to the Point of Sale system, according to which 10,583 cell machines have been connected to the Point of Sale system. Pakistan Customs collected customs duty of Rs 606 billion in the first ten months of the current financial year against the target of Rs 507 billion.

Thus, Rs 99 billion and 20% more than the target. In April this financial year, customs duty of Rs. 65 billion was collected against the target of Rs. 59 billion. Thus, 10% more customs duty was obtained. It may be mentioned here that the customs duty collected in the current financial year was Rs. 88 billion more than the previous financial year which is 17% more even though the economic slowdown is continuing due to corona.

Smuggled goods worth Rs 4.54 billion were seized in April this year as against Rs 3.43 billion last year. Thus, the seized items have increased by 32%. In the first ten months of the current financial year, smuggled goods worth Rs 48.55 billion were seized as against Rs 31 billion last year, thus increasing the seizure by 56 percent.

According to the FBR report, Prime Minister Imran Khan while praising the efforts of the Federal Board of Revenue on increasing tax revenues said that the economy is moving towards recovery from government policies.

In his statement, Prime Minister Imran Khan lauded the efforts of the FBR to increase tax revenue, saying that the FBR collected 384 billion rupees in April 2021, an increase of 57 percent over April 2020. Prime Minister Imran Khan said that During the same period last year, Rs 240 billion was collected. From July to April, revenues increased by 14% to Rs 3780 billion. The economy is moving towards recovery from government policies.

Also checkout: Receives 2.5 Billion, Foreign Exchange Reserves At Highest Levels

Facebook Comments

comments

Comments are closed.