ISLAMABAD: The Federal Board of Revenue (FBR) surpassed its collection target by Rs13 billion to Rs2.911 trillion in the first eight months of the current fiscal year, showed provisional data released by the tax authorities on Friday.
It was the second consecutive month that the tax collection surpassed it projection.
The revenue collection increased by nine per cent during July-February when compared with Rs2.681tr collected in the same period last year.
An official FBR announcement said that the revenue collection was achieved two days ahead of the end of the current month. The FBR expects a few more billions in the next couple of days, the statement added.
The government while preparing the budget for the current fiscal year had assured the International Monetary Fund of raising Rs4.963tr as against Rs3.989tr collected in FY20 — a projected increase of 24.4pc.
The FBR refunded Rs152bn during 8MFY21 compared to Rs79bn paid last year, an increase of 92pc.
FBR Chairman Javed Ghani told Dawn that revenue performance is a reflection of growing economic activities despite facing the challenge of the second wave of Covid-19. “We are doing well despite giving more than 90pc refunds when compared with the same period last year,” he said.
Besides, Mr Ghani said, a massive increase in anti-smuggling seizures by Customs has resulted in increased output by the manufacturing sector. “We are also focusing on various administrative measures to increase revenue,” the chairman said.The performance of individual taxes are quite different as some did well while others still were struggling to recover.
Despite the introduction of several measures, the realisation of income tax is much below expectations. The income tax collection during the July-February period stood at Rs1.062tr as against the target of Rs1,154bn, showing a shortfall of Rs92bn.
The income tax collection, however, showed growth of 6pc when compared with Rs1,001bn collected during the same period last year.
Meanwhile, the sales tax collection jumped 17pc to Rs1.364tr in the eight months of FY21 from Rs1.161tr in the same period last year. However, the target was projected at Rs1.155tr which was surpassed by Rs209bn. The growth came as a result of a rise in fuel prices, increase in imports and revival of economic activities during the period under review.
The federal excise duty (FED) collections were up 7pc to Rs173bn as against Rs162bn last year. The FED target for July-February was set at Rs200bn, which was missed by Rs17bn.
Moreover, customs collection stood at Rs454bn during the July-February period this year as against Rs436bn over the last year, indicating a growth of 6pc. The target projected under customs was Rs389bn, which was surpassed by Rs65bn.
Published in Dawn, February 27th, 2021