June 01, 2023 (MLN): Despite all odds, the Federal Board of Revenue (FBR) has put in tremendous effort to achieve the revenue target for the month of May 2023 by collecting Rs605bn gross revenues, said a press statement issued by FBR today.
Against a target of Rs621bn, FBR collected Rs572bn net revenue, while refunds amounting to Rs33bn were issued.
It collected Rs205bn under the head of domestic income tax compared to Rs131bn in May 2022, thereby showing a growth of 57% YoY.
A healthy growth of 28% YoY was achieved in the domestic sales tax with a collection of almost Rs100bn.
Around Rs41bn was collected as Federal Excise Duty (FED) showing an increase of 32% YoY.
However, a cumulative growth of almost 44% YoY has been achieved in the collection of domestic taxes.
This is despite the fact that the economy has slowed down and the GDP growth rate has been revised downward.
However, on the import side, the same momentum could not be maintained due to unprecedented import compression.
In U.S. dollar terms, imports in the country declined by 37% YoY in May 2023 compared to May 2022.
Moreover, the import of high-duty items such as vehicles, home appliances, and miscellaneous consumer goods such as garments, fabrics, footwear, etc have been drastically reduced, changing the import mix.
This has impacted the collection of customs duties and other taxes.
Despite an 18% dip in the collection of customs duties and an 11% YOY decline in overall tax collection at the import stage, FBR’s overall growth was registered at 16% YoY compared to the previous year.
