ISLAMABAD (APP): The net revenues collection by the Federal Board of Revenue (FBR) increased by 29.1 percent during the first three quarters of the current fiscal year as compared to the corresponding period of last year, the board reported here on Thursday.
According to provisional figures released by the board, FBR collected Rs4,382 billion during July-March (2021-22) as compared to the collection of Rs3,394 billion during July-March (2020-21).
During the month of March, the board collected Rs 575 billion, representing an increase of 20.5 percent over Rs 477 billion collected in March 2021. On the other hand, the gross collections increased from Rs 3,577 billion last year to Rs 4,611 billion during the 3 quarters of current financial year, showing an
increase of 28.9%.
Likewise, the amount of refunds disbursed during March, 2022 was Rs.31.9 billion compared to disbursement of Rs.26.3 billion in March last year, registering an increase of 21.3%. Similarly, refunds worth Rs 229 billion have been disbursed during July 2021 to March 2022 compared to Rs183 billion paid last year, showing an increase of 25.0%.
It is pertinent to mention 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.
For the first time in the country’s history, Sales Tax on all POL products has been reduced to zero which cost FBR Rs 45 billion in March, 2022. Likewise, the revenue impact of Sales Tax exemptions provided to fertilizers, pesticides, tractors, vehicles, and oil & ghee come to Rs18 billion per month.
Similarly, zero rating on pharmaceutical products has cost FBR Rs.10 Billion in Sales Tax during the month of March, 2022. Thus, in aggregate these relief measures have impacted revenue collection by approximately Rs 73 billion during the month of March, 2022. Furthermore, the political uncertainty and import compression also negatively impacted revenue collection during March.
The board mentioned that it had 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 the ease of doing business but also translated in a healthy and steady growth in revenue collection, according to statement issued by the board.
Likewise, the incumbent top leadership of 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. That’s precisely why FBR continues to surpass its assigned revenue targets despite challenges and price stabilization measures adopted by the government, the statement added.