ISLAMABAD: The Federal Board of Revenue (FBR) collected Rs3.352 trillion in tax revenue in the first seven months (July to January) of the current fiscal year, exceeding its target by Rs262bn.
However, data released by the FBR on Monday suggested the quantum of higher-than-targeted collection dropped from Rs286bn in the first six months to Rs262bn by the end of seven months despite higher inflation and higher economic growth.
In a statement, the FBR said it successfully maintained the momentum of its growth trajectory in revenue collection.
According to provisional information, the country’s premier revenue collection organisation collected net revenue of Rs3.352tr during July-January against the target of Rs3.09tr. The figure was 30.4pc higher than the collection of Rs2.571tr during the same period last year.
Tax revenue rises 30pc to Rs3.352tr during seven months
For January, the net collection stood at Rs430 billion, a year-on-year increase of 17.2pc. These figures would further improve before the close of the day and after book adjustments have been taken into account.
On the other hand, gross collections rose 30.6pc year-on-year to Rs3.53tr during the seven-month period. The amount of refunds disbursed jumped 36pc to Rs182bn from Rs134bn a year ago.
The FBR said it had introduced a number of interventions both at policy and operational levels aimed at maximising revenue potential through digitisation, transparency and taxpayers’ facilitation. This resulted in ensuring the ease of doing business and translated in healthy and steady growth in revenue collection, it said.
The tax collection authority said it had launched a new culture of clean taxation with a clear focus on collecting only fair tax and not holding up due refunds.
This had 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, it said, adding that it had helped the FBR continue to surpass its assigned revenue targets “for the first time ever in the country’s history” despite challenges and price stabilisation measures adopted by the government.
Published in Dawn, February 1st, 2022
