ISLAMABAD: The Federal Board of Revenue (FBR) has fixed Rs1,200 billion as the revenue collection target for the first quarter (July-September) 2021-22 to meet the annual target of Rs5,829 billion for the new fiscal year.
Sources told Business Recorder, here on Saturday that based on the tax projections of Rs1,200 billion for the first three months of 2021-22, the FBR has fixed month-wise targets for the first quarter of the current fiscal year.
So far, the tax machinery has provisionally collected net revenue of Rs413 billion during July, which has exceeded the target of Rs342 billion by Rs71 billion. Now the FBR has to collect Rs858 billion in August and September to meet the quarterly target of Rs1,200 billion.
According to the provisional information, the FBR has collected net revenue of Rs413 billion during July 2021, which has exceeded the target of Rs342 billion by Rs71 billion.
This represents a growth of about 36 percent over the collection of Rs303 billion during the same period last year. These figures would further improve before the close of the day, and after book adjustments have been taken into account, the sources say, adding these collections are the highest ever in the month of July. This outstanding revenue performance is a reflection of sustained economic revival spurred by government policies.
FBR surpasses FY2020-21 tax collection target
On the other hand, the gross collections increased from Rs317 billion during this period last year to Rs419 billion, showing an increase of 32.1 percent.
The amount of refunds disbursed was Rs20 billion compared to Rs15.7 billion paid last year, showing an increase of 26.6 percent.
This is reflective of the FBR’s resolve to fast-track refunds to prevent liquidity shortages in the industry, despite, facing the challenge of the fourth wave of Covid-19.
Income tax returns for tax year 2020 have reached 3.53 million compared to 2.72 million in tax year 2019, showing an increase of 30 percent.
The tax deposited with returns was Rs51 billion compared to only Rs33 billion last year, showing an increase of 54 percent.
Copyright Business Recorder, 2021