ISLAMABAD: The Federal Board of Revenue (FBR) requires growth of 21.5 percent in revenue collection to meet the annual target of Rs7,470 billion set for 2022-23 as compared to the tax collection in the previous fiscal year (2021-22).

According to FBR report, the revenue target for 2022-23 has been fixed at Rs7,470 billion which demands growth of 21.5 percent over the collection of Rs6,148.5 billion made during 2021-22.

In absolute terms, around Rs1,322 billion of additional revenues are to be collected by the FBR in FY 2022-23 to meet the target.

The FBR has collected net revenue of Rs685 billion during the month of September against the target of Rs684 billion which is 27 per cent higher than the collection of September last year. Similarly, the target of the first quarter of the current financial year has also been surpassed by achieving Rs1,635 billion against the target of Rs1,609 billion and the growth is more than 17 per cent for the quarter. The FBR has collected Rs27 billion in excess of the target.

The report stated that the target for 2022-23 is challenging, given the fact that the government is focusing on controlling the current account deficit and rising inflation, which would result in import contraction and slowdown in the overall GDP growth.

FBR set to achieve Rs6.1trn revised tax collection target

Nonetheless, the FBR is confident that its team has the ability and the resolve to accomplish this gigantic task as an upward revised target has already been achieved for the financial year ended on June 30, 2022.

To achieve the target several efforts are being made at the policy as well as operational levels. There is a focus on enhanced use of technology and a policy shift towards taxing the high-income groups through direct taxation such as the imposition of super tax, poverty alleviation tax, revision of individual tax slabs including salaried class, increase in the federal excise duty (FED) on international air travel, increased tax on luxury motor vehicles etc. Keeping in view the past performance of the FBR and the revenue measures taken during the current budget there are high hopes of achieving the tax target for FY 2022-23, the FBR report added.

Copyright Business Recorder, 2022