FBR will have to collect Rs2,759 bn in second half of current fiscal year

ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs2,204 billion in the first half (July-Dec) period of the current fiscal year and now the tax machinery will be facing a gigantic task of collecting Rs2,759 billion in the remaining period to materialise the desired target of Rs4,963 billion for the fiscal year 2020-21.

The FBR on Friday released the provisional revenue collection figures for the first six months of the current year. According to the provisional information, the FBR has collected a net revenue of Rs2,204 billion, which is 99.7% of its six-monthly target of Rs2,210 for the current Fiscal Year from July to December and which showed a growth of 5pc over Rs2,101 billion, which was collected during the same period last year 2019-20.

The Income Tax collection for July to December stood at Rs816 billion. Similarly, collection of Sales Tax, Federal Excise Duty, Customs Duty remained at Rs915 billion, Rs127 billion and Rs336 billion respectively. Moreover, an additional Rs10 billion has been collected from book adjustment. It is expected that revenue to be collected from book adjustment will increase in coming days.

For the month of December only, the total collected revenue stood at Rs508 billion, which was 97.7pc of the target of Rs520 billion and showed a growth of 8.3pc against 469 billion collected last December.

There is an increase of Rs39 billion in the revenue collection of December 2019. This is the highest monthly growth during Jul-Dec period. In the first six months of current Fiscal Year, refunds to the tune of Rs102 billion have been issued compared to Rs53 billion for the same period last year. This represents an increase of 90 percent in the issuance of refunds. Moreover, under the Prime Minister’s Corona Relief Package, refunds of Rs42 billion have also been issued this year.

Despite excessive issuance of refunds this year, FBR has managed to collect significantly more revenue in comparison to the last year when Covid had not disrupted economic life. Increased refunds have greatly helped boost the economic activity in the country.

FBR’s appreciable performance demonstrates that despite the second wave of Covid, government policies have insulated the economy which is showing growing signs of economic revival across the broad-spectrum business activities.

During the first six months of current Fiscal Year, smuggled goods worth Rs30 billion were seized as compared to seizures of Rs22 billion during the corresponding months of 2019. After many years, the FBR has restored the sanctity of last date of filing of income tax returns.

This has been welcomed by taxpayers who have filed 2.3 million returns till 31st December compared to 2.17 million last year. Income Tax paid during filing of returns stood at Rs43.5 billion compared to only Rs28 billion deposited last. This shows an increase in tax deposit with returns of 55pc.

The FBR is fully geared towards automation, e-audit, and simplification of procedures, e-payment of duty drawback so as to add to Ease of Doing Business (EoDB). The FBR has launched a single page simplified Income Tax Return for SME manufacturers. It has upgraded Iris system for issuing SMS and e-mails whenever any notice is issued or any assignment is created by Tax Officer. The FBR has launched a system Maloomat-TaxRay wherein taxpayers’ can access all information available with the FBR by logging through a secure mechanism. For further facilitation, this feature has been launched in mobile app, Tax Assan, so that taxpayers’ can easily access all such information.

The FBR has established special committees to urgently resolve the complaints of taxpayers. Now, the taxpayers can file complaints through Helpline, Email, Complaint Portal and registered post.