F.P. Report
ISLAMABAD: The government is positive about achieving the current fiscal year (FY 2021-22) revenue collection target, as the Federal Board of Revenue (FBR) has collected Rs443 billion which exceeds the set target of Rs441 billion by Rs2 billion fixed for February 2022, WealthPK reported.
The board’s performance is being lauded by the government including Prime Minister Imran Khan and Finance Minister Shaukat Tarin. In a statement on the social media on Wednesday, Prime Minister Imran Khan said the FBR had successfully knocked down February revenue target of Rs441 billion, posting a robust growth of 28.5%, and up to the month growth of over 30%. “Because of this performance of FBR, we are able to subsidise petrol, diesel and electricity and give relief to our people”, he added. Sharing the statement of Prime Minister Imran Khan to the media, spokesperson for the FBR Asad Tahir Jappa in an instant reaction said, “Hard earned and well deserved. Alhumd-o-Lilah!!!”
Finance Minister Shaukat Tarin has also issued a congratulatory statement for the FBR on the social media saying, “Congratulations! FBR has successfully knocked down February revenue target of Rs441 billion, posting robust growth of 28%, and up to the month growth of over 30 %. At this run-rate, we will achieve our annual revenue targets. Insha’Allah”. The country’s premier tax collection organisation has recently released the provisional revenue collection figures for the months from July, 2021 to February, 2022 of FY22.
According to the provisional information, the FBR has collected net revenue of Rs3,799 billion during July 2021 to February 2022 of FY22, which has exceeded the target of Rs268 billion. This represents a growth of about 30.3% over the collection of Rs2,916 billion during the same period last year. In its statement, the FBR said it was worth sharing that inland revenue collection increased by 29.0% during July 2021 to February 2022, reaching Rs3,177 billion against Rs2,463 billion collected in the same period last year.
Likewise, the Pakistan Customs has successfully maintained its growth trajectory by collecting Rs622 billion as against Rs454 billion during the same period last year. The net collection for the month of February 2022 realized Rs443 billion, representing an increase of 28.3% over Rs345 billion in February, 2021.
The FBR said these figures would further improve before the close of the day and after book adjustments have been taken into account. The amount of refunds disbursed was Rs197 billion during July 2021 to January, 2022 compared to Rs157 billion paid last year, showing an increase of 25.4%.
It is pertinent to mention that the FBR has introduced a number of innovative interventions both at policy and operational level with a view to maximizing revenue potential through digitization, transparency, and
taxpayers’ facilitation. This has not only ensured the ease of doing
business, but also promoted healthy and steady growth in revenue collection.
Likewise, the FBR top leadership has launched a new culture of clean
taxation with a clear focus on collecting only the fair tax and not holding
up refunds which are due to be paid.
This has not only fast-tracked the process of bridging trust deficit between
the FBR and taxpayers, but also ensured the much-needed cash liquidity for
the business community. That’s precisely why, for the first time ever in the
country’s history, the FBR continues to surpass its assigned revenue targets
despite challenges and price stabilization measures adopted by the
government.
However, the Ministry of Finance in its recently issued monthly economic
outlook report said during the first seven months of the current fiscal
year, the FBR exceeded its revenue target by 8.5%.
In absolute terms, revenue amounting to Rs3,350.8 billion was collected
against the target of Rs3,089.7 billion, which is Rs261.1 billion more than
the seven-month target.
Collection during Jul-Jan FY22 also increased by Rs779.7 billion in absolute
or 30.3% as compared to last year.
Domestic tax collection grew by 28.8% during Jul-Jan FY22. Domestically,
direct tax grew by 24.3%, sales tax by 34.7%, federal excise duty (FED) by
14.9%, and customs duty by 38.5%.
