ISLAMABAD: The Federal Board of Revenue (FBR) has estimated to collect Rs 5,336 billion without incorporating revenue projected from policy/administrative measures during 2021-22.
According to the FBR's report on revenue forecasting issued on Sunday, the revenue forecast for 2021-22 by applying the buoyancy estimates and projected respective macroeconomic indicators would be Rs.5,336 billion without policy/administrative measures. After adding policy/enforcement measures the target would be Rs.5,829 billion. However the revenue collection and achieving of the target would largely depend on the performance of the economy against the targets.
During the FBR's technical briefing on Finance Bill 2021 held on June 11 at the FBR House, the FBR officials informed that the government has taken measures of around Rs 506 billion including taxation measures of Rs 264 billion and enforcement measures of Rs 242 billion in budget (2021-22).
The FBR's report stated that the autonomous growth has been applied on base year’s expected collection (i.e. 2020-21) for each respective head to project an increase of Rs. 636 billion. This addition has been added in the expected collection of 2020-21 thus, the revenue forecast for 2021-22 without additional Policy/Admn measures has been obtained to the tune of Rs. 5,336 billion. The required growth over the expected collection of 2020-21 i.e. Rs. 4,700 billion would be 13.5percent in 2021-22. However, with the addition of Policy/Admn measures the target for FY 2021-22 would be Rs. 5,829 billion, requiring a growth of about 24percent.
With the recovery of economy the revenue collection is also improving, and with further improvements in coming months hope the tax collection shall also increase, thus enabling FBR to achieve its revenue during 2021-22 target, FBR report added.
Copyright Business Recorder, 2021