July 1, 2021 to January 31, 2022: Revenue collection target surpassed by Rs262bn

ISLAMABAD: The Federal Board of Revenue (FBR) has provisionally collected net revenue of Rs3,352 billion during first seven months (July, 2021 to January, 2022) of the current fiscal year against the assigned target of Rs3,090 billion, reflecting an increase of Rs262 billion.

The FBR has provisionally collected Rs430 billion in January 2022 against the monthly target of Rs457 billion, reflecting a shortfall of Rs27 billion.

The FBR has provisionally collected Rs430 billion in January 2022 against Rs367 billion collected in January, 2021, reflecting an increase of 17.2 percent.

The government has enforced the Finance (Supplementary) Act, 2022 to withdraw sales tax exemptions to the tune of Rs343 billion from January 16, 2022.

The sales tax and the Federal Excise Duty collection started from January 16, 2022 from withdrawal of exemptions.

The revenue collection during the month of January 2022 also included additional revenue generated from the import stage and local supplies.

The impact of the additional revenue generated during the last 16 days is reflected in January 2022 collection since implementation of the Finance (Supplementary) Act, 2022.

The FBR from January 16, 2022 also increased the advance tax on a wide range of cellular services from 10 to 15 percent including telephone bills of subscribers; prepaid cards for telephones; sale of units through any electronic medium; internet bills of subscribers, and prepaid cards for internet.

According to the data released by the FBR here on Monday, the FBR has successfully maintained momentum of its growth trajectory in revenue collection.

The FBR has released the provisional revenue collection figures for the months, July, 2021 to January, 2022 of current Financial Year 2021-22.

According to the provisional information, the country’s premier revenue collection organisation has collected net revenue of Rs3,352 billion during July, 2021 to January, 2022 of current Financial Year 2021-22, which has exceeded the target of Rs3,090 billion by Rs262 billion. This represents a growth of about 30.4 percent over the collection of Rs2,571 billion during the same period, last year. The net collection for the month of January, 2022 realized Rs430 billion representing an increase of 17.2 percent over Rs367 billion collected in January, 2021.

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 gross collections increased from Rs2,705 billion during July, 2021 to January, 2022 to Rs3,533 billion in the current Financial Year July, 2021 to January, 2022, showing an increase of 30.6 percent.

Likewise, the amount of refunds disbursed was Rs182 billion during July, 2021 to January, 2022 compared to Rs134 billion paid last year, showing an increase of 35.9 percent. The FBR has introduced a number of innovative interventions both at policy and operational levels with a view to maximise revenue potential through digitization, transparency, and taxpayers’ facilitation.

This has not only resulted in ensuring the ease of doing business but also translated in a healthy and steady growth in revenue collection.

Likewise, the incumbent top leadership of the FBR 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 the 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 stabilisation measures adopted by the government.

Copyright Business Recorder, 2022