ISLAMABAD: The Federal Board of Revenue (FBR) has provisionally collected net revenue of Rs 489 billion during August 2022 against the target of Rs. 483 billion, reflecting an increase of Rs 6 billion.
During the first two months of July and August of 2022-23, the FBR has collected Rs 948 billion against the assigned revenue collection target of Rs 926 billion. So far the Board has surpassed the assigned target by Rs 22 billion in the current fiscal year 2022-23.
Now, the tax machinery is required to collect Rs 661 billion during September 2022 for meeting Rs 1609 billion target for the first quarter (July-September) period of the current fiscal year.
The FBR has released the provisional revenue collection figures for the month of August, 2022. According to the provisional information, FBR has collected net revenue of Rs. 489 billion during August 2022, which has exceeded the target of Rs. 483 billion against Rs. 448 billion collected during the same period, last year. These figures would further improve after the book adjustments have been taken into account. These collections are the highest ever in the month of August. This outstanding revenue performance is a reflection of FBR’s resolve to build on its growth trajectory despite floods, zero rating on POL products, and import compression.
On the other hand, the gross collection increased from Rs. 462 billion during August last year to Rs. 526 billion, showing an increase of 14%. Likewise, the amount of refunds disbursed during August was Rs. 37 billion compared to Rs. 14.3 billion paid last year, showing an increase of 161%. This is reflective of FBR’s strong commitment to fast-track refunds and thereby prevent liquidity shortages in the industry.
The significant revenue increase in August is largely the outcome of various policy and revenue measures introduced by the government in the Finance Act 2022. Unlike in the past, there is a visible focus on taxing the rich and affluent. Owing to this paradigm shift, the growth in domestic Income Tax is almost 38% which is a remarkable shift towards direct taxation.
Copyright Business Recorder, 2022
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