Daily Times

The Federal Board of Revenue (FBR) has surpassed the revenue collection target for the first seven months (July-Jan) period of the current fiscal year year by Rs20 billion, as it collected Rs2,570 billion against the target of Rs2,550 billion.

The FBR on Saturday released the provisional revenue collection figures for the first seven months of the current financial year. According to the provisional information, FBR has collected net revenue of Rs2,570 billion during July-January period, which has significantly exceeded the target of Rs2,550 billion. This represents a growth of about 6.4 percent over the collection of Rs2,416 billion during the same period of the last year.

The net collection for the month of January was Rs364 billion against a target of Rs340 billion, representing an increase of 12.3 percent over last January and 107 percent of the target. This is the first double-digit monthly growth during the fiscal year.

On the other hand, the gross collections increased from Rs2,464 billion to Rs2,699 billion, showing an increase of nearly 10 percent. The amount of refunds was Rs129 billion compared to Rs69 billion paid last year, showing an increase of 87 percent. This is reflective of FBR’s resolve to fast-track refunds to prevent liquidity issues of the industry. According to the statement, the improved revenue performance is a reflection of growing economic activities in the country despite facing the challenge of the second wave of Covid-19. Going forward, it is expected that this revenue performance would be further strengthened as economic recovery gains more momentum.

The FBR is expanding serious efforts to broaden the tax base in the country. Early signs suggest such efforts are bearing fruits.

As on 30-1-2021, income tax returns filed numbered 2.52 million compared to 2.31 million last year, showing an increase of 9 percent. The tax deposited with returns was Rs48.3 billion compared to only Rs29.6 billion, showing an increase of 63 percent, said the statement.

Besides, the FBR has issued notices to nearly 1.4 million taxpayers, who were supposed to file return, or filed nil return, or mis-declared their assets to comply with their legal obligations. The exercise is eliciting encouraging response. However, those who are not complying would be pursued diligently until compliance is achieved.