As of July-April 2021-22, Pakistan’s Federal Board of Revenue (FBR) has received net revenues of Rs. 4,858 billion, a 28.6 percent increase over the Rs. 3,778 billion earned during the same period prior year.
A total of Rs.239 billion was collected between July and April of 2021-22, according to numbers released by the board on Saturday.
The net collection for the month of April, 2022 reached at Rs. 480 billion showing an increase of 24.9 percent over Rs. 384 billion collected in April, 2021.
Gross receipts, on the other hand, rose from Rs. 3,981 billion in July-April (2020-21) to Rs. 5,122 billion in the current financial year’s July, a 28.7 percent rise.
Likewise, the amount of refunds issued during April, 2022 was Rs.34.6 Billion whereas in April, 2021 the refunds disbursed were Rs.19.6 Billion, marking a rise of 76.2 percent .
From July to April of this year, Rs 264 billion in refunds were paid out, an increase of 30.1 percent over the Rs 203 billion paid out the year before.
It is crucial to add that even though FBR had committed to a goal of Rs. 6100 billion with the International Monetary Fund (IMF), the same was never declared an objective of FBR.
Now FBR will require Rs. 484.5 billion each month to meet the first goal of Rs.5829 billion and Rs. 621 billion each in May and June to achieve the revised target of Rs. 6100 billion.
According to an FBR statement, the existing administration is committed to raising Rs. 6100 billion within the current fiscal year.
The continuous extraordinary and steady growth trajectory in revenue collection has been accomplished despite substantial tax relief offered by the government on several vital commodities to common man.
There would be no sales tax on any POL items for the first time in India’s history, which will save FBR Rs 45 billion in April 2022. Similarly, sales tax exemptions on fertilisers, pesticides, tractors, cars, and oil & ghee generate Rs.18 billion in income each month in additional revenue..
Similarly, FBR lost Rs 10 billion in Sales Tax in April 2022 as a result of zero rating on medicinal items. Thus, in aggregate these relief measures have reduced tax collection by roughly Rs. 73 Billion during the month of April, 2022.
Furthermore, tax collection suffered in April as a result of political unrest and a reduction in imports.
We should point out that FBR has implemented a number of novel policy and operational measures aimed at maximising revenue potential via digitalization, transparency, and the convenience of taxpaying citizens and businesses.
As a consequence, not only has conducting business been easier, but income collection has grown steadily and healthily as well.
Likewise, the existing senior leadership of FBR has begun a new culture of clean taxes with a clear emphasis on collecting just the fair tax and not holding up refunds which are supposed to be given.
This has not only fast sped the process of repairing the trust gap between FBR and Taxpayers but also provided the much-needed monetary liquidity for business community.
That’s why, according to the statement, despite government hurdles and price stability efforts, FBR continues to exceed its allocated revenue projections.
