Despite two amnesty schemes: Rs318 bn revenue shortfall in FY-2018-19

ISLAMABAD: Despite having tax collection in shape of two amnesty schemes, the FBR’s provisional collection stood at Rs3,832 billion against revised target of Rs4,150 billion, indicating a revenue shortfall of Rs318 billion in fiscal year 2018-19.

Out of total whitening of Rs2,400 billion through last tax amnesty scheme, around Rs1,400 billion were whitened through immoveable properties as fresh filers availed the scheme to whiten difference between FBR’s valuation rates and market rates.

The revenue collection figure of Rs3,832 billion has not yet been reconciled with AGPR but the tax record available with The News disclosed that the FBR fetched Rs76.9 billion through two amnesty schemes as collection through amnesty scheme introduced during the PML-N-led regime, which was extended up to July 2018, had helped partial collection of Rs34 billion in fiscal year 2018-19 and second amnesty scheme launched by PTI-led regime in June 2019 fetched Rs42.9 billion till June 30, 2019. In the last fiscal year, the FBR had collected Rs3,842 billion.

When a government official was contacted and asked for his opinion on non-achievement of revenue target by the FBR, he opined that when the new government took charge everything was in mess, and they whole system needed an overhaul. He said that now the government has done its initial work, and new team has taken charge of the FBR which is reforming the Bureau. He said that previous governments were used to take advance tax from the tax payers to show a bulged figure but the present government did not do this.

The month-wise collection sheet of the FBR shows that the revenue collection in July 2018 stood at Rs222.062 billion against Rs211.419 billion in same month of last financial year 2017-18. In August 2018, the FBR collection stood at Rs248.755 billion against Rs238.967 billion. The revenue collection in September 2018 was standing at Rs323.690 billion against Rs316.493 billion in same month of the fiscal year 2017-18. The FBR’s collection fetched Rs276.174 billion in October 2018-19 against Rs266.797 billion in the same month of FY-2017-18. Revenue collection stood at Rs280.717 billion in November 2018-19 against Rs272.134 billion in the same month of the previous financial year. The FBR’s collection was standing at Rs406.998 in December 2018-19 against Rs417.072 billion in the same month of FY-2017-18. Revenue collection stood at Rs271.794 billion in January 2018-19 against Rs273.395 billion in the same month of the last financial year 2017-18.

The revenue collection was standing at Rs271.735 billion in February 2018-19 against collection of Rs263.849 billion in the same month of the fiscal year 2017-18. Revenue collection in March 2018-19 fetched Rs358.597 billion against collection of Rs364.961 billion in the same month of FY-2017-18.

The FBR has collected Rs289.732 billion in April 2018-19 against collection of Rs294.734 billion in the same month of FY-2017-18. In May 2018-19, the FBR’s collection stands at Rs328.137 billion against a collection of Rs351.617 billion in the same month of last financial year. The FBR has collected Rs476.955 billion in June 2018-19 against Rs484.412 billion in the same month of FY-2017-18.

Total collection in shape of all four major taxes including Income Tax, Sales Tax, Federal Excise Duty and Customs Duty stood at Rs3755.385 billion in fiscal year 2018-19, against collection of same heads to the tune of Rs3754.851 billion in the same period of FY-2017-18.

In June 2019, the FBR collected Rs221.075 billion in shape of Income Tax, Rs154.057 billion as Sales Tax, Rs34.588 billion as Federal Excise Duty and Rs62.274 as Customs Duty. The import compression and other policy induced taxation measures played havoc with the overall, tax collection.

To a question, the FBR sources said that the total collection for latest tax amnesty scheme up to July 3, 2019 had fetched Rs57 billion.

The government expects Rs70 billion through amnesty scheme as the remaining amount will come into national kitty with late surcharge as the amnesty had allowed payment of tax with late surcharge in the range of 10 to 40 percent.