FBR surpasses tax collection target of Rs 443 billion by Rs 15 billion for July

FBR collection

 The Federal Board of Revenue (FBR) has announced the provisional revenue collection figures of Rs 458 billion for July 2022, media reported. 

According to the data, the FBR has collected total revenue of Rs458 billion in the period, exceeding the target of Rs 443 billion by Rs15 billion. 

These collections are the highest ever during the month of July, as per the FBR, which shows a growth of around 10% over the collection of Rs 417 billion during the corresponding period a year ago. 

The figures are further expected to increase after book adjustments have been considered. 

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

In contrast, the gross collection showed an increase from Rs 438 billion during July the previous year to Rs 486 billion, an increase of 11%. Similarly, the number of refunds paid during July was Rs 28 billion against Rs 21 billion paid a year ago, showing a growth of 32%. 

Because of the paradigm shift, the domestic taxes added 55% to the collection, whereas import taxes remained at 45%. 

This has made the trend reversed. Earlier, the taxes at the import stage were 52-53% of the overall collection by FBR. Besides, the growth in domestic Income Tax is around 31%, which is a “remarkable shift towards direct taxation”, the FBR stated. 

Likewise, there is a substantial rise in the Advance Tax collected during July. There is also a 118% gain in the Advance Tax on the sale of properties u/s 236-C because of allowing a withholding provision applies regardless of the holding period. Moreover, a 40% increase in Advance Tax u/s 147, particularly from the banking companies is because of a change in the tax rate. 

Similarly, a rise in the rate of FED on tobacco/ cigarettes has paid its dividends. The FED from tobacco has reported a record growth of more than 47% or Rs 2.6 billion and a similar increase in Sales Tax from the Tobacco Sector has reported a record 67% growth. 

The improved FED on international air travel has also registered an increase of over 200%. 

Furthermore, Pakistan Customs has gained Rs 67 billion under the head of customs duty in July 2022 compared to Rs 65 billion collected during the corresponding period a year ago, showing a marginal growth of 2.58%. 

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