Revenue collection reaches at Rs4.17tr during 11MFY21: FBR

June 2, 2021 (MLN): Federal Board of Revenue (FBR) has released the provisional revenue collection figures for the first eleven months of current fiscal year.

In a series of Tweet, FBR Spokesperson shared provisional figures related to revenue collection.

FBR has collected net revenue of Rs4,170billion during Jul-May period, which has exceeded the target of Rs3,994bn by Rs176bn. This represents a growth of about 18% over the collection of Rs3,549bn during the same period last year.

The net collection for the month of May was Rs386bn, against a required increase of Rs214bn, representing an increase of 69% over Rs229bn collected in May 2020 and 168% of the target. The year-on-year growth of 69% is unprecedented particularly as it is realized on the heel of 57% in April. 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 Rs3,674bn during this period last year to Rs4,386bn, showing an increase of 19.4 %.

The amount of refunds disbursed was Rs216bn compared to Rs125bn paid last year, showing an increase of 42.3 %. 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, during the Eid holidays, revenue collection slowed down considerably.

Meanwhile, FBR’s efforts to broaden the tax base are expending apace. Early signs suggest such efforts are bearing fruits. As on 31-5-2021, income tax returns for tax year 2020 have reached Rs2.93million Compared to Rs2.63mn in tax year 2019, showing an increase of 11.4 %.

The tax deposited with returns was Rs52bn compared to only Rs34bn last year, showing an increase of 55%.

FBR has also released the information about Tier-I retailers who have been integrated with POS system. According to the information, 10,767 sales points have been integrated with Point of Sales Linked Invoicing System.

Pakistan Customs has collected Rs672bn under the head of customs duty in first eleven months of FY 2020-21 against the assigned target of Rs565bn and exceeded its target by Rs107bn which is 19% more than the assigned target.

Whereas during the month of May, 2021 an amount of Rs64bn has been collected under the head of customs duty against the monthly target of Rs57bn which is again 12% more than the assigned monthly target.

Rs107bn was collected more under the head of customs duty in first 11 months of current financial year as compared to FY19-20, despite the re-arrival of COVID-19 pandemic and has shown a growth of 19% as compared to previous financial year, which is quite remarkable.

During May 2021 smuggled goods worth Rs2.6bn have been seized so far, while in May 2020 smuggled goods worth Rs1.5bn were seized, thus showing a monthly increase of 74%.

Similarly, during last 11 months (July 2020- May 2021) of current financial year smuggled goods worth Rs52.5bn have been seized as compared to Rs40.8bn in Jul 2019-May 2020 of the last financial year thus showing an increase of 29 %.

Due to effective enforcement measures taken by Inland Revenue (IR) and Customs, additional revenue of Rs175bn is collected in the current Financial Year out of which Inland Revenue (IR) has added around Rs100bn.

IR enforcement measures include recovery out of arrears, efficient audits, improved monitoring of sales tax, POS integration, broadening of tax base and monitoring of withholding taxes.

Similarly, out of Rs175bn whereas the remaining additional Rs75bn have come from effective enforcement measures taken by Pakistan Customs.

These measures include counter smuggling operations regarding tea, tyres, textiles, electronics, palm oil and POL.

Besides enforcement measures, effective administrative measures like auction of goods, control measures against under invoicing, adjudication of court cases, recovery of arrears, DIRBS and audits have also increased the revenue generation.

During the current FY from July to May, the major sectors for the collection of revenue include auto sector, banks, cement, POL, tobacco and sugar. Tax revenue of Rs108bn is collected from the auto sector which was Rs72bn in the last year with growth of 51 percent.

The revenue collected from the POL is Rs577bn which was Rs516bn last year showing an increase of 12 percent. From the tobacco sector, FBR has collected Rs129bn revenue which was Rs104bn last year thus showing an increase of 24 percent.

The revenue from sugar sector was Rs53bn which was Rs31bn last year showing a growth of 74 percent.

The Customs duty collections in the current year from the major items include vehicles, Iron Steel and Machinery and mechanical appliances. Customs duty of Rs98bn is collected from vehicles which was Rs52bn last year showing an increase of 86 percent.

Customs duty from Iron and Steel remained Rs53bn which was Rs42bn last year showing a growth of 24 percent.

Similarly, Customs duty from machinery and mechanical appliances is Rs38bn which was Rs30bn last year in the same period thus showing a growth of 26 percent.

Directorate General of Intelligence & Investigation-IR showed commendable performance during July 2020 to May 2021.

During this period, Directorate General forwarded 1,491 Investigation Reports and Red Alerts to the field formations involving revenue amounting to Rs. 228 billion.

During the period October 2018 to May 2021, Directorate General filed 146 complaints under Anti-Money Laundering Act where more than Rs52bn were involved. Directorate seized 7,527 cartons containing 75,270,000 cigarette sticks during the period of July to May.

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Posted on: 2021-06-02T00:16:00+05:00