Eight-month revenue collection of Rs2916 exceeds target

ISLAMABAD: The Federal Board of Revenue (FBR) has collected revenues of Rs.2916 billion during the first eight months (July-February) of current year, exceeding the target of Rs2898 billion set for the period.

As compared the same period of last year, the collection witnessed growth of about 6 percent when compare to the collection of Rs.2750 billion in July-February (2019-20), according to provisional figures released by FBR here Sunday.

Meanwhile, the net collection for the month of February 2021 was recorded at Rs.343 billion against the target of Rs325 billion.

On the other hand, the gross collections increased from Rs2823 billion during this period against the collection of Rs3068 billion lastly year, showing an increase of nearly 9%.

The amount of refunds disbursed was Rs.152 billion compared to Rs.79 billion paid last year, showing an increase of 97%. This is reflective of FBR’s resolve to fast-track refunds to prevent liquidity shortages in the industry.

"The improved revenue performance is a reflection of growing economic activities in the country despite facing the continued challenge of second wave of COVID-19. During March-June 2021, it is expected that this revenue performance would be improved substantially compared to 2020 when economic activities were disrupted," the statement added.

Meanwhile, FBR’s efforts to broaden the tax base are are bearing fruits. As on February 28, 2021, income tax returns for tax year 2020 have reached 2.62 million compared to 2.43 million last year, showing an increase of 8%.

The tax deposited with returns was Rs.49.6 billion compared to only Rs.31.0 billion, showing an increase of 60%, the statement said adding that last year the final date for submission of returns was February 28.

The board’s decision to adhere to December 8 as the last date has been vindicated as more returns and higher tax payments have been recorded during the tax year 2020 compared to 2019.

Besides, FBR issued notices to nearly 2.1 million taxpayers who were supposed to file return, or have filed a nil return, or mis-declared their assets or have not been filing return for sales tax 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.

FBR has also released the information about Tier-I retailers who have been integrated with POS system. According to the information, 9952 sales points have been integrated with Point of Sales Linked Invoicing System.

Meanwhile, the Pakistan Customs has initiated a focused counter-smuggling drive and during February 2021, smuggled goods worth Rs 4.08 billion have been seized while in February 2020; smuggled goods worth Rs. 3.02 billion were seized, thus showing a monthly increase of 35.18 %.

Similarly, during last 8 months (July 2020-Feb 2021) of current financial year smuggled goods worth Rs. 39.52 billion have been seized as compared to Rs. 25.10 billion from July 2019 to February 2020 of the last financial year thus showing an increase of 57.45 %.

Moreover, the value of seized goods of Rs. 39. 52 billion in 8 months of current FY has crossed the total value of seized goods of last year. In FY 2019-20, smuggled goods worth Rs 36 billion were seized.