ISLAMABAD: The Federal Board of Revenue (FBR) has collected net revenue of Rs2,570 billion during July-January (2020-21) against the target of Rs2,550 billion, reflecting an increase of Rs20 billion.
The FBR on Saturday released the provisional revenue collection figures for the first seven months of the current year.
According to the provisional information, the FBR has collected net revenue of Rs2,570 billion during Jul-Jan 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 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 the 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 the Covid-19.
Going forward, it is expected that this revenue performance would be further strengthened as economic recovery gains more momentum. The FBR is expending serious efforts to broaden the tax base in the country. Early signs suggest such efforts are bearing fruits.
As on January 30, 2021, income tax returns filed numbered 2.52 million compared to 2.31 million last year, showing an increase of nine percent.
The tax deposited with returns was Rs48.3 billion compared to only Rs29.6 billion, showing an increase of 63 percent.
Besides, the FBR has issued notices to nearly 1.4 million taxpayers, who were required to file returns, or filed nil returns, or miss-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, the FBR added.
Copyright Business Recorder, 2021
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