Collects more than Rs1tr: FBR surpasses assigned revenue collection target

ISLAMABAD: The Federal Board of Revenue (FBR) has surpassed its assigned revenue collection target in the 1st quarter of the current fiscal year.

According to FBR announcement made here on Friday night stating that on the basis of State Bank Of Pakistan (SBP)’s provisional figures, the FBR has reported a net revenue figure of Rs1,004 billion exceeding the given target of Rs970 billion by a margin of Rs34 billion. Income Tax collection for the quarter stood at Rs358 billion. Similarly, collection of Sales Tax, Federal Excise Duty and Customs Duty remained at Rs426 billion, Rs56 billion and Rs164 billion respectively. This is the first time FBR has managed to cross the figure of Rs1 trillion in gross as well as net collection in first quarter of a fiscal year. The gross revenue stood at Rs1052 billion.

This is despite the fact that during the 1st quarter of the current fiscal year, refunds to the tune of Rs48 billion against only Rs26.5 billion last year have been issued, which has greatly helped boost the economic activity in the country. FBR’s appreciable performance is despite the fact that the economy has been sluggish in the wake of ongoing COVID-19 pandemic.

Moreover, the government had extended significant tax relief measures to the public in the Finance Act, 2020. It also reflects taxpayers’ growing confidence in the revenue measures being taken by the present government. The FBR has initiated quite a few revenue and facilitation related revitalisation measures e.g. establishment of Large Taxpayers’ Unit, Multan and Corporate Tax Office (CTO), Islamabad. Furthermore, Pakistan Customs took extraordinary measures to resolve the issues to Transit Trade resulting in bringing down the dwell time of en-route cargo containers till cross borders to 05 days from 30 days. Another initiative taken on the directions of prime minister is that Transit Trade Facilitation portal has also been operationalised.

Pakistan Customs has launched a countrywide operation against transportation, storage and sale of smuggled goods in coordination with LEAs resulting in historic seizures of smuggled goods including gutka, betel nuts, skimmed milk, cigarettes, Iranian diesel, gold, NDP vehicles amounting to Rs6.2 billion, which is 56 percent higher as compared to seizures amounting to Rs3.9 billion during September, 2019. During the first quarter smuggled goods worth Rs14.38 billion have been seized as compared to seizures of Rs8.4 billion during the corresponding period of 2019.

FBR is fully geared up towards automation, e-audit, and simplification of procedures, e-payment of duty draw back so as to add to Ease of Doing Business (EoDB). Furthermore, FBR has launched a full-fledged crackdown on corruption, rent seeking, harassment, and misuse of authority as about 100 officers and official have been suspended or dismissed.