ISLAMABAD: Federal Board of Revenue (FBR) has released the provisional revenue collection figures for the months July, 2021 to March, 2022 of current Financial Year 2021-22.
According to the provisional information, FBR has collected net revenue of Rs4,382 billion during July, 2021 to March, 2022 of current Financial Year 2021-22, which has exceeded the target of Rs 247 billion. This represents a growth of about 29.1% over the collection of Rs. 3,394 billion during the same period, last year.
The net collection for the month of March, 2022 realized Rs 575 billion representing an increase of 20.5% over Rs477 billion collected in March, 2021. On the other hand, the gross collections increased from Rs3,577 billion during July, 2020 to March, 2021 to Rs4,611 billion in current Financial Year July, 2021 to March, 2022, showing an increase of 28.9%.
Likewise, the amount of refunds disbursed during March, 2022 was Rs.31.9 billion while in March, 2021 the refunds disbursed were Rs.26.3 billion, registering an increase of 21.3% Similarly, refunds worth Rs229 billion have been disbursed during July, 2021 to March, 2022 compared to Rs183 billion paid last year, showing an increase of 25.0%.
It is pertinent to mention that the ongoing unprecedented and constant growth trajectory in revenue collection has been achieved despite massive tax relief given by the government on various essential items to common man. For the first time ever in the country’s history, Sales Tax on all POL products has been reduced to zero which cost FBR Rs.45 billion in March, 2022. Likewise, the revenue impact of Sales Tax exemptions provided to Fertilizers, Pesticides, Tractors, Vehicles, and Oil & Ghee come to Rs.18 billion per month.
Similarly, zero rating on Pharmaceutical products has cost FBR Rs. 10 Billion in Sales Tax during the month of March, 2022. Thus, in aggregate these relief measures have impacted revenue collection by approximately Rs.73 Billion during the month of March, 2022. Furthermore, the political uncertainty and import compression also negatively impacted revenue collection during March.
It is worth sharing that FBR has introduced a number of innovative interventions both at policy and operational level with a view to maximize revenue potential through digitization, 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.
Likewise, the incumbent top leadership of FBR has launched a new culture of clean taxation with a clear focus on collecting only the fair tax and not holding up refunds which are due to be paid. This has not only fast tracked the process of bridging the trust deficit between FBR and Taxpayers but also ensured the much-needed cash liquidity for business community.
That’s precisely why FBR continues to surpass its assigned revenue targets despite challenges and price stabilization measures adopted by the government.