AVN 71.19 Decreased By ▼ -0.01 (-0.01%)
BOP 9.05 No Change ▼ 0.00 (0%)
CHCC 134.19 Increased By ▲ 0.69 (0.52%)
DCL 9.32 Increased By ▲ 0.07 (0.76%)
DGKC 106.67 Increased By ▲ 0.46 (0.43%)
EFERT 60.85 Decreased By ▼ -0.10 (-0.16%)
EPCL 45.40 Decreased By ▼ -0.02 (-0.04%)
FCCL 21.15 Increased By ▲ 0.11 (0.52%)
FFL 15.34 Increased By ▲ 0.19 (1.25%)
HASCOL 14.53 Increased By ▲ 0.05 (0.35%)
HBL 130.50 Increased By ▲ 0.06 (0.05%)
HUBC 79.06 Decreased By ▼ -0.19 (-0.24%)
HUMNL 6.24 Increased By ▲ 0.04 (0.65%)
JSCL 27.95 Increased By ▲ 0.15 (0.54%)
KAPCO 28.23 No Change ▼ 0.00 (0%)
KEL 3.68 No Change ▼ 0.00 (0%)
LOTCHEM 13.01 Decreased By ▼ -0.04 (-0.31%)
MLCF 40.37 Increased By ▲ 0.10 (0.25%)
OGDC 100.00 Decreased By ▼ -0.13 (-0.13%)
PAEL 33.80 No Change ▼ 0.00 (0%)
PIBTL 12.71 Increased By ▲ 0.05 (0.39%)
PIOC 93.01 Increased By ▲ 0.24 (0.26%)
POWER 9.80 Increased By ▲ 0.02 (0.2%)
PPL 92.60 Increased By ▲ 0.09 (0.1%)
PSO 199.45 Increased By ▲ 0.30 (0.15%)
SNGP 43.90 Decreased By ▼ -0.11 (-0.25%)
STPL 15.36 No Change ▼ 0.00 (0%)
TRG 69.22 Increased By ▲ 0.15 (0.22%)
UNITY 26.99 Increased By ▲ 0.14 (0.52%)
WTL 1.05 No Change ▼ 0.00 (0%)
BR100 4,335 Increased By ▲ 68.12 (1.6%)
BR30 22,012 Increased By ▲ 442.39 (2.05%)
KSE100 41,665 Increased By ▲ 596.45 (1.45%)
KSE30 17,533 Increased By ▲ 251.98 (1.46%)

ISLAMABAD: The Federal Board of Revenue (FBR)'s policy measures of Rs637.4 billion taken through the Finance Act, 2019, failed to generate additional revenue due to external factors beyond the control of the FBR.

The FBR's report on performance of 2019-2020, issued on Monday, revealed that in fact, the FY 2019-2020, because of the Covid-19, had been a very difficult year for the economy, and so for the FBR revenues.

At time of allocation of target to the FBR, it was estimated that positive impact of Rs637.4 billion would be witnessed in Financial Year 2019-2020 with respect to policy measures introduced through the Finance Bill 2019-2020.

However, due to factors not foreseen at the time of target allocation to the FBR, in certain areas, some external factors beyond the control of the FBR have occurred, thus, resulting in lesser than the expected collection.

More than 40 percent of the FBR revenue depends on the national imports, thus, any problems in imports would hit the international trade taxes accordingly. During FY 2019-2020, compression in imports has been around six percent, consequently affecting the import taxes in the following manner: Customs duties and FED at import stage has been affected and its collection declined by nine percent and 22.4 percent respectively as compared to previous fiscal year; withholding taxes at import stage fell by 10 percent, and sales tax collection at import stage grew by just 8.2 percent.

Due to less consumption of petroleum products, domestic sales tax collected from oil marketing companies has reduced considerably. The decline in production and sales as well as the exchange rate increase affected the collection from auto and auto parts sector.

Overall economic recession has adversely affected the FBR's tax collection. Large Scale Manufacturing sector has declined, resulting in lesser payment of taxes.

The growth rate of national economy expected at the time of budget allocation could not be materialised due to multiple macroeconomic reasons, the FBR added.

Copyright Business Recorder, 2020