The Federal Board of Revenue (FBR) has collected a tax of 2,568 billion rupees from its target amount of 2,551 billion rupees bypassing the limit of 17 billion rupees. So, it has set a new record on Saturday. The collection of revenue exceeds the seven-month target showed the sources.
The FBR’s, monthly target for January 2021 was Rs 341 billion while it collected Rs 363 billion and exceeded the target of Rs 22 billion.
“The revival of stalled IMF program is around the corner and the FBR’s performance for achieving its target for January 2021 will help to restore the confidence of tax collection machinery,” said one top official of FBR.
In addition, the FBR mechanism could claim to the IMF that it would achieve the annual tax collection target of Rs 4.963 billion for the current fiscal year.
A senior FBR official said net profit stood at Rs 363 billion which was 12% more than the same month last year and the highest for this fiscal year. He said economic activity had begun to increase so that it had an impact on efforts to increase income.
How much tax FBR needs to collect:
FBR “Now needs to collect Rs 2,395 billion over the remaining five months (February to June) to meet the desired target of Rs 4,963 billion by 30 June 2021.”
FBR had received net revenue of Rs 2,205 billion from July to December, a 5% increase compared to Rs 2,101 billion in the same period last year.
According to sources, the income tax collection for July to December is Rs 816 billion.Likewise, Sales Tax, Federal Excise Duty, and Customs Duty remained at Rs 915 billion, Rs 127 billion, and Rs 336 billion, respectively.
In December alone, total revenue collected was RS 508 billion, 97.7% of the RS 520 billion target and an 8.3% increase compared to RS 469 billion last December.
In December 2019, revenue collection increased by Rs 39 billion, the highest monthly growth in the period from July to December.
Within the first six months of the current budget, 102 billion rupees have been replaced, compared with 53 billion rupees in the same period last year. This indicates a 90% increase in refund payments. Additionally, for the Prime Minister’s Corona Relief Package, refunds of Rs42 billion were also issued this year.
Despite, excessive issuance of refunds this year, tax authorities managed to generate significantly more revenue than the previous year when COVID did not disturb economic life. The increased rate of recovery has helped boost economic activity in the country.