PM’s aide, FBR chief apprise minister of revenue collection strategy

ISLAMABAD: Minister of State for Finance Dr Aisha Ghaus Pasha, Wednesday, reviewed the performance of the tax machinery, including the progress on achievement of the target set for the second quarter (October-December) 2022-23.

The Minister of State for Finance visited the Federal Board of Revenue (FBR) and met Special Assistant to the Prime Minister on Revenue, Tariq Pasha and FBR Chairman Asim Ahmad.

The meeting took place at the office of Tariq Pasha at the FBR Headquarters.

Dr Aisha obtained the briefing from the FBR on revenue collection, strategy to meet targets, reforms in the tax administration, new initiatives and broadening of the tax base. The Minister of State for Finance was informed that the FBR has exceeded both targets of Rs2,680 billion set for July-November (2022-23) and the monthly target of Rs537 billion for November 2022.

The FBR continues to demonstrate excellent performance in revenue collection for the fifth consecutive month of the current financial year and has exceeded both the five months target of Rs2,680 billion as well as monthly target of Rs537 billion, despite import compression and zero rating on POL products. As per provisional figures, Rs2,688 billion has been collected against Rs2,330 billion collected during the corresponding period of the previous year by recording an increase of over 15.3 per cent. The FBR has also issued refunds to the tune of Rs135 billion as against Rs124 billion issued last year.

Provisional gross revenue collection is recorded as Rs2,823 billion for the first five months as against Rs2,454 billion collected during the corresponding period of the previous fiscal year. Collection of direct tax registered maximum growth of 43 per cent.

The provisional net collection for the month of November 2022 is Rs538.2 billion which shows an increase of more than 11.5 per cent over the collection of Rs480 billion for November 2021.

The FBR also recognises the endeavours of all field formations and officers for their untiring efforts and commitment to optimise revenue collection in difficult times where sales tax collection on imports is showing negative growth.

Achievement of targets was made possible due to extraordinary steps taken in the areas of recoveries, monitoring and day-to-day vigilance. Only in the area of income tax arrears, the FBR collected Rs24.17 billion during the five-month period as against Rs.11.69 billion collected last year. During the month, Rs.8.98 billion was collected against Rs.6.65 billion collected last year.

The revenue collection trends during the first five months of the financial year augur well towards the achievement of the assigned revenue targets for the current financial year.

The FBR has introduced a number of innovative interventions both at policy and operational levels with a view to maximise revenue potential through digitisation, transparency, and taxpayers’ facilitation. This has not only resulted in ensuring the ease of doing business but also translated in a healthy and steady growth in revenue collection.

Copyright Business Recorder, 2022