ISLAMABAD: The Federal Board of Revenue (FBR) collected Rs1.635 trillion in the first quarter of the current fiscal year, exceeding the Rs1.609tr target by Rs26bn, showed provisional data released on Friday.

Compared with the revenue collection of Rs1.395tr in 2021, the revenue collection posted nearly 17pc growth in the first quarter.

Meanwhile, the last date for the filing of income tax returns for the tax year 2022 was extended until Oct 31 to accommodate those taxpayers who did not file their returns within the due date, which was Sept 30.

The revenue collection in September surpassed the target by Rs1bn to Rs685bn against a projected monthly target of Rs684bn, an increase of 27pc.

These figures would further improve before the close of the day and after book adjustments have been taken into account.

The significant revenue increase in September is largely the outcome of various policy and revenue measures introduced by the government in the Finance Act 2022.

The Federal Board of Revenue refunded Rs84bn during July-September compared to Rs62bn paid last year, reflecting an increase of 35pc. This is reflective of FBR’s resolve to fast-track refunds to prevent liquidity shortages in the industry.

On the sidelines of announcing the petroleum prices for next quarter, Finance Minister Ishaq Dar said that the last date of tax returns was made following representations and demands from all stakeholders.

He said the date is specifically extended to provide relief to those affected by floods.

An official announcement of the FBR said this performance in revenue collection is despite zero rating of Sales Tax on POL products, import compression and the prevailing situation of floods.

This impressive growth is primarily based on the 41pc growth in direct taxes in the first quarter which is in line with the policy of the government to tax the rich.

The revenue performance is reflective of the robust revenue mobilisation strategy of the FBR and effective enforcement by the field formations.

FBR expresses its profound gratitude to all the taxpayers who have made possible this remarkable record collection during the first quarter of the year, added the statement.

Its tax collection posted historic high growth in the first quarter of the current financial year. This performance shows that the FBR is well on its way to achieving the target of Rs7tr for the year despite the daunting challenges, compelling constraints posed by the import contraction, and slowing down of the economy.

Published in Dawn, October 1st, 2022