ISLAMABAD: According to preliminary data released on Tuesday, the Federal Board of Revenue (FBR) is on track to surpass the upwardly revised target by June 30 after collecting a record-breaking Rs6 trillion thus far in the current fiscal year, representing an increase of 29% over the Rs4.65 trillion collection in FY21.
To keep the budget deficit at a predetermined level, the PTI government increased the income target to Rs6.1 trillion. During budget planning for the current fiscal year, the previous administration promised the IMF that it would raise Rs5.829 trillion, as opposed to the Rs4.721 trillion it had received in FY21.
Asad Tahir, a spokeswoman for FBR, stated that the remaining money would be gathered in the upcoming two days to surpass the Rs6.1tr target. He continued, “We will accomplish our annual target,” in a statement that he described as a historical revenue collection.
After closing payment receipts and reconciliation with the State Bank of Pakistan, the provisional numbers will improve further.
Tarin praises the tax authorities for their excellent work.
Regarding the FBR of record revenue collection, neither the prime minister nor the finance minister’s offices issued any public statements. However, Shaukat Tarin, a former finance minister, expressed gratitude for the FBR’s performance on Twitter. Tweeted Mr. Tarin was, “Well done, FBR.”
He said, “This was made possible by former Prime Minister Imran Khan’s robust economic development and progressive tax policy. Mr. Tarin continued by saying that we shouldn’t return to regressive tax policies that overtax the productive parts of the economy and tax the already taxed while undertaking the taxed.
It is unprecedented in FBR history for the first eight months (July to February) of 2021–22 to consistently exceed the monthly collection goals. However, since March, when the PTI administration lowered taxes on petroleum goods to zero, collecting has slowed. As a result of the zero taxes on petroleum goods, FBR forecast an annual revenue loss of Rs182 billion.
Customs duty, sales tax, and withholding tax collections have increased significantly in the import stage, primarily due to the unheard-of increase in imports in FY22.
From July through June of FY21 to July through June of FY22, the gross collection, including refunds and rebate payments, grew by 28.6 percent to Rs6.306 trillion.
In FY22, Rs306 billion was reimbursed as opposed to Rs248 billion that was paid the previous year, a 23.38 percent increase. This demonstrates FBR’s determination to expedite reimbursements to avoid a liquidity crunch in the market.
Customs duty collection was Rs974 billion in FY22 compared to Rs734 billion the previous year, a 33 percent raise due to the increased import bill and the increasing arrival of smuggling-prone goods through legal channels. Despite no recent policy changes, the 960 billion rupee annual customs revenue target has been surpassed. The tax authorities have made up small gaps from their yearly targets in income tax, sales tax, and federal excise duty because of the extra revenue collection from customs.
The amount of income tax collected in FY22 was Rs2.19 trillion compared to Rs1.67 trillion during the same period last year, a jump of 31%. However, IT refunds were paid at a deficient level during the FY22; they were Rs. 14 billion this year versus Rs. 17 billion last year. The planned objective for income tax collection in FY22 was Rs2.227 trillion, but it was not met.
Sales tax revenue increased by 28% to Rs2.515 trillion from Rs1.963 trillion during the same time last year. The highest-ever increase in gasoline prices, an increase in imports, and a recovery in economic activity during the period under consideration contributed to the growth.
The planned sales tax target of Rs2.576 trillion was barely missed during the period under consideration.
In FY22, the Federal Excise Duty collection increased by 13% to Rs320 billion from Rs283 billion during the same period in the previous year. However, the amount collected was Rs17 billion short of the goal.
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