LAHORE: All the taxes surpassed their targets in Financial Year 2020-21 except direct taxes, which fell short by 3.5 percent, said Federal Board of Revenue (FBR) sources.
According to the data compiled by the Board, the original target of direct taxes was set as Rs 2,043 billion at the outset of the last fiscal year, however it was revised to Rs 1,789 out of which a collected of Rs 1,726 billion was materialized, thus registering a shortfall of 3.5 percent of the revised target.
However, sales tax collection surpassed by 102.8 percent, followed by Federal Excise by 101.7 percent, and Customs duty by 106.8 percent.
In absolute terms, FBR has collected Rs 4,734.2 billion during FY 2020-21 against Rs 3,997.4 billion collected in the preceding financial year (PFY), indicating a growth of 18.4 percent. All taxes have recorded a positive and double digit growth.
The pace of growth in collection was slower in the first half as compared to the second half of FY 2020-21. During the first six months, growth was just 5.3 percent, but increased substantially to around 33 percent in the second half (Table 3). This can be attributed to the fruition of new taxation measures taken, coupled with the post Covid-19 economic recovery in the second half.
During first eight months, said the Board sources, collection grew by 6 percent on average but from March onwards, a sharp rise is discernable. Growth in the month of March 2021 was 49.3 percent, in April 57.7 percent, in May 67.8 percent and in June 23.0 percent. The higher growth trend during last four months is also partially attributable to lockdown during four months of FY 2019-20, wherein a sharp reduction in collection was recorded.
Copyright Business Recorder, 2021
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