ISLAMABAD: The Federal Board of Revenue has shown a remarkable performance during first quarter of 2020-21 by collecting a net revenue of Rs1,004 billion against the assigned target of Rs 970 billion, reflecting an extraordinary increase of Rs34 billion.
According to the FBR announcement Friday, the FBR has done remarkably well in the 1st quarter of the current fiscal year. On the basis of the State Bank Of Pakistan (SBP)'s provisional figures, FBR has reported a net revenue figure of Rs.1,004 billion exceeding the given target of Rs. 970 billion by a margin of 34 billion. Income Tax collection for the quarter stood at Rs. 358 billion.
Similarly, collection of Sales Tax, Federal Excise Duty and Customs Duty remained at Rs. 426 billion, Rs. 56 billion and Rs. 164 billion respectively. This is the first time FBR has managed to cross the figure of 1 trillion in gross as well as net collection in first quarter of a fiscal year. The gross revenue stood at Rs.1052 billion.
This is despite the fact that during the first quarter of the current fiscal year, refunds to the tune of Rs. 48 billion against only Rs. 26.5 billion last year have been issued, which has greatly helped boost the economic activity in the country. FBR's appreciable performance is despite the fact that the economy has been sluggish in the wake of on-going COVID-19 pandemic. Moreover, the Government had extended significant tax relief measures to the public in the Finance Act, 2020. It also reflects taxpayers' growing confidence on the revenue measures being taken by the present government.
FBR has initiated quite a few revenue and facilitation related revitalization measures e.g. establishment of Large Taxpayers' Unit Multan and Corporate Tax Office (CTO), Islamabad. Furthermore, Pakistan Customs took extraordinary measures to resolve the issues to Transit Trade resulting in bringing down the dwell time of en-route cargo containers till cross borders to 05 days from 30 days. Another initiative taken on the directions of Prime Minister is that Transit Trade Facilitation portal has also been operationalised.
Pakistan Customs has launched a country wide operation against transportation, storage and sale of smuggled goods in coordination with LEAs resulting in historic seizures of smuggled goods including Gutka, Betel Nuts, Skimmed Milk, Cigarettes, Iranian Diesel, Gold, NDP Vehicles amounting to Rs. 6.2 billion which is 56% higher as compared to seizures amounting to Rs.3.9 billion during September, 2019. During the first quarter smuggled goods worth Rs. 14.38 billion have been seized as compared to seizures of Rs. 8.4 billion during the corresponding period of 2019.
FBR is fully geared towards automation, e-audit, and simplification of procedures, e-payment of duty draw back so as to add to Ease of Doing Business (EoDB). Furthermore, FBR has launched a full-fledged crackdown against corruption, rent-seeking, harassment, and misuse of authority as about 100 officers and official have been suspended or dismissed, the FBR added.
Copyright Business Recorder, 2020