FBR creates history by exceeding revised revenue target of Rs 6.1 trillion

FBR revenue

The Federal Board of Revenue (FBR) gathered Rs 6.125 trillion against the upward revised target of Rs 6.100 trillion, an increase of by Rs 25 billion. 

The gross income collection sum up to Rs 6,305 billion for July-June (2021-22), and after paying refunds of Rs 305 billion, the net collection was found to be Rs 6,000 billion.

The provisionally collected records mark a 29% growth from the last year’s Rs 4,651 collections.

The breakup of tax collection showed that the net income tax collection stood at Rs 2,191 billion in July-June (2021-22) compared to Rs 1,671 billion during the corresponding period of 2020-21, presenting an increase of Rs 520 billion.

Read more: FBR exceeds nine-month tax collection target by Rs 247 billion

During 2021-22, the FBR has provisionally collected Rs 2,515 billion in sales tax compared to Rs 1,963 billion in the same period of 2020-21, an increase of Rs 552 billion.

Meanwhile, the collection of the Federal Excise Duty was found to be at Rs 320 billion during the reviewed period against Rs 283 billion during the same period of 2020-21, showing a growth of Rs 37 billion.

The provisional collection of customs duty, during 2021-22, was Rs 974 billion against Rs 734 billion in the same period of 2020-21, reflecting an increase of Rs 240 billion.

The members of the last PTI government showed a quick response to the news of FBR meeting its revenue targets.

However, the fact cannot be overlooked that the credit for progress in revenue collection goes mainly to a rise in imports and tax demand raised in the last half of the year comprising those targeting the telecom, fertilizer, and cement sector amongst others.

Moreover, experts were quick enough to highlight that the revenue collection statistics were nothing to rejoice about; rather they further pointed out the basic problems in the tax structure including the increase of 36% in imports during the first 11 months of the financial year against the same period last year.

Further, according to the State Bank of Pakistan’s (SBP) data, the recent account deficit clocked in at $1.425 billion for the month of May 2022, rose 131% over April 2022. The CAD rose to 123% over last year.

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