June 28, 2022 (MLN): The amount of tax collection by the Federal Board of Revenue (FBR) for the first time reached Rs6 trillion in the fiscal year to date (FYTD).
Last week, the FBR tax collection stood at Rs5.82tr. FBR will likely achieve a tax collection target of Rs6.1tr by the end of FY22.
In 11MFY22, the FBR collected net revenue of Rs5.35tr which represented a growth of about 28.4% over the collection of Rs4.16tr during the same period last year.
It is pertinent to mention that a constant growth trajectory in revenue collection has been achieved despite massive tax relief given by the government on various essential items to the 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 Rs45 billion in May 2022.
It is also worth sharing that FBR has introduced a number of innovative interventions both at policy and operational levels with a view to maximizing revenue potential through digitization, transparency, and taxpayers' facilitation. This has not only resulted in ensuring transparency, taxpayers’ facilitation, and the ease of doing business but also translated into 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 that 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 the business community. That's precisely why FBR continues to surpass its assigned revenue targets despite challenges and price stabilization measures adopted by the government.
