Raza Kazmi
ISLAMABAD: Federal Board of Revenue (FBR) has released the provisional revenue collection figures for the first ten months of current fiscal year. According to the provisional information, FBR has collected net revenue of Rs.3780 billion during Jul-April period, which has exceeded the target of Rs.3637 billion by more than Rs.143 billion. This represents a growth of about 14% over the collection of Rs.3320 billion during the same period last year.
The net collection for the month of April was Rs.384 billion, against a required increase of Rs.242 billion, representing an increase of 57% over Rs.240 billion collected in April 2020 and 159% of the target. The year-on-year growth of 57% is unprecedented particularly as it is realized on the heel of 46% in March. These figures would further improve before the close of the day and after book adjustments have been taken into account.
On the other hand, the gross collections increased from Rs. 3438 billion during this period last year to Rs.3976 billion, showing an increase of 16 %. The amount of refunds disbursed was Rs.195 billion compared to Rs.118 billion paid last year, showing an increase of 65%. This is reflective of FBR’s resolve to fast-track refunds to prevent liquidity shortages in the industry.
The improved revenue performance is a reflection of growing economic activities in the country despite facing the challenge of third wave of COVID-19. However, in the closing days of the April, revenue collection slowed down considerably as measures to fight COVID were put in place. Collections in May and June would be affected in case fighting pandemic reduces the space for economic activities.
Meanwhile, FBR’s efforts to broaden the tax base are expending apace. Early signs suggest such efforts are bearing fruits. As on 1-5-2021, income tax returns for tax year 2020 have reached 2.9 million compared to 2.6 million in tax year 2019, showing an increase of 12%. The tax deposited with returns was Rs.50.6 billion compared to only Rs.33.1 billion, showing an increase of 53%.
FBR has also released the information about Tier-I retailers who have been integrated with POS system. According to the information, 10,583 sales points have been integrated with Point of Sales Linked Invoicing System.
Pakistan Customs has collected Rs. 606 billion under the head of customs duty in first ten months of FY 2020-21 against the assigned target of Rs. 507 billion and exceeded its target by Rs. 99 billion which is 20% more than the assigned target. Whereas during the month of April, 2021 an amount of Rs. 65 billion has been collected under the head of customs duty against the monthly target of Rs. 59 billion which is again 10% more than the assigned monthly target. It is quite important to mention that an amount of Rs. 88 billion was collected more under the head of customs duty in first 10 months of current financial year as compared to FY 2019-20, despite the re-arrival of COVID-19 pandemic and has shown a growth of 17% as compared to previous financial year, which is quite remarkable.
During April 2021 smuggled goods worth Rs. 4.54 billion have been seized so far, while in April 2020 smuggled goods worth Rs. 3.43 billion were seized, thus showing a monthly increase of 32 %. Similarly, during last 10 months (July 2020- April 2021) of current financial year smuggled goods worth Rs. 48.55 billion have been seized as compared to Rs. 31 billion in Jul 2019-April 2020 of the last financial year thus showing an increase of 56 %.