April 1, 2022 (MLN): The Federal Board of Revenue (FBR) has collected net revenue of Rs4,382 billion during 9MFY22, which has exceeded the target of Rs247bn, a statement issued by FBR revealed today.
This represents a growth of about 29.1% over the collection of Rs3,394bn during the same period last year. The net collection for the month of March 2022 realized Rs575bn representing an increase of 20.5 % over Rs477bn collected in March 2021.
On the other hand, the gross collections increased from Rs3,577bn from July 2020 to March 2021 to Rs4,611bn, showing an increase of 28.9%. Likewise, the number of refunds disbursed during March 2022 was Rs31.9bn while in March 2021 the refunds disbursed were Rs26.3bn, registering an increase of 21.3%. Similarly, refunds worth Rs229bn have been disbursed during the period compared to Rs183bn paid last year, showing an increase of 25%.
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 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 Rs45bn in March 2022. Likewise, the revenue impact of Sales Tax exemptions provided to Fertilizers, Pesticides, Tractors, Vehicles, and Oil & Ghee to Rs18bn per month.
Similarly, zero-rating on pharmaceutical products has cost FBR Rs10bn in Sales Tax during the month of March 2022.
Thus, in aggregate, these relief measures have impacted revenue collection by approximately Rs73bn 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 the policy and operational level with a view to maximizing 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 that are due to be paid.
The statement further added that 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.
While applauding the nation on FBR’s achievement, Minister for Finance and Revenue, Shaukat Tarin said, “At this run rate we are all set to knock down the annual target of Rs. 6.1 trillion.”
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