FBR surpasses tax collection target, collects Rs 2570bn in 7 months

ISLAMABAD: The Federal Board of Revenue (FBR) has collected net revenues of Rs.2570 billion during the first seven months of current fiscal year, significantly exceeding the target of Rs 2550 billion set for the period.

This represents a growth of about 6.4% during July-January (2020-21) over the collection of Rs 2416 billion during the same period last year, according to provisional figures released by FBR here Saturday.

The net collection for the month of January was Rs 364 billion against a target of Rs 340 billion, representing an increase of 12.3% over last January and 107% of the target.

This is the first double-digit monthly growth during the fiscal year.

On the other hand, the gross collections increased from Rs 2464 billion to Rs 2699 billion, showing an increase of nearly 10%.

The amount of refunds was Rs 129 billion compared to Rs 69 billion paid last year, showing an increase of 87%. This is reflective of FBR’s resolve to fast-track refunds to prevent liquidity issues of the industry.

The improved revenue performance is a reflection of growing economic activities in the country despite facing the challenge of second wave of COVID-19, said FBR in a statement.

Going forward, it is expected that this revenue performance would be further strengthened as economic recovery gains more momentum.

FBR is expending 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%.

The tax deposited with returns was Rs 48.3 billion compared to only Rs 29.6 billion, showing an increase of 63%.

Besides, 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, the statement said, however, those who were not complying would be pursued diligently until compliance is achieved.