FBR collects Rs5.349 trillion tax revenue in 11 months

ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday said it had collected Rs490 billion in May 2022 against monthly target of Rs511 billion, registering a shortfall of Rs21 billion.

The board has fetched Rs5,349 billion in the first eleven months (July-May) period of the current fiscal year and now the FBR would have to collect Rs751 billion in the last month (June 2022) in order to display Rs6,100 billion on its books on June 30, 2022.

It is expected that the FBR might collect another Rs650 billion June so there is a likely shortfall of Rs100 to Rs150 billion in the revised target for the current fiscal year of 2021-22.

According to the provisional figures, the FBR has collected net revenue of Rs5,349 billion during July 2021-May 2022 of current Financial Year 2021-22.

“The provisional figures reported will further improve after closure of payment receipts and reconciliation with State Bank of Pakistan,’ the FBR said in a statement. “This represents a growth of about 28.4 percent over the collection of Rs4,164 billion during the same period, last year.”

The FBR said the net collection for the month of May, 2022 realised Rs490 billion represents an increase of 26.8 percent over Rs387 billion collected in May, 2021. “On the other hand, the gross collections increased from Rs4,389 billion during July, 2020 to May, 2021 to Rs 5,644 billion in current financial year, showing an increase of 28.6 percent,” it added.

Likewise, the amount of refunds disbursed during May, 2022 was Rs30.4 billion while in May, 2021 the refunds disbursed were Rs21.1 billion, registering an increase of 44.3 percent. Similarly, refunds worth Rs295.5 billion have been disbursed during July, 2021- May, 2022 compared to Rs224.2 billion paid last year, showing an increase of 31.8 percent.

“Needless to add that the ongoing unprecedented and constant growth trajectory in revenue collection has been achieved despite massive tax relief given by the government on various essential items to common man,” the FBR said.

“For the first time ever in the country’s history, sales tax on all POL products has been reduced to zero which cost FBR Rs45 billion in May, 2022”

The statement said FBR has introduced a number of innovative interventions both at policy and operational level with a view to maximize revenue potential through digitization, transparency, and taxpayers' facilitation. “This has not only resulted in ensuring transparency, taxpayers’ facilitation, and the ease of doing business but also translated in a healthy and steady growth in revenue collection.”

Likewise, the FBR has launched a new culture of clean taxation with a clear focus on collecting only the fair tax and not holding up refunds which are due to be paid. “This has not only fast-tracked the process of bridging the trust-deficit between FBR and taxpayers but also ensured the much-needed cash liquidity for business community,” it added.