01 July,2022 , 03:34 amAdmin

FBR surpasses its goal and collects Rs6,125 billion in taxes

The Federal Board of Revenue (FBR), which has exceeded its annual taxes collection goal, has raised around Rs 6,125 billion for the current fiscal year 2021-22 which ended on June 30, 2022.

FBR collected more than 52 percent through the import stage, while collection on the domestic stage saw a decline. Miftah Ismail, Federal Minister for Finance, tweeted that "As per PM Shehbaz, we paid all processed DLTL Claims pending for three years. FBR today paid all pending export rebates, sale taxes, and income tax claims. Each and every processed claim. Alhamdulillah".

Annual Tax Collection

Annual Tax Collection

Due to increased imports and massive devaluation, the FBR has exceeded its annual tax collection target. On the eve of the completion of the 6th Review of the $6 billion Extended Fund Facility, (EFF). The FBR's tax collection revises upwards from Rs5.928 trillion and Rs6.125 trillion. This was due to the fact that the government had failed to collect a petroleum levy during the first half of the current fiscal year. The target for petroleum levy revising downwards from Rs610 billion, and the FBR's target raises to Rs6.1 trillion.

FBR increased its tax collection due to the higher import bill. This bill will reach $78 billion in the current fiscal year. The GST on the domestic stage, which measures the economic activity and consumption power of individuals, did not see any improvements in the last financial year.

The fiscal Year 2021-22 - Taxes

The Federal Board of Revenue (FBR), in an official announcement, has published the preliminary revenue collection figures for the fiscal year 2021-22. The FBR collected net revenue in excess of Rs 6,125 billion during the current fiscal year (July 21 - June 22). This exceeds the revised upward target of Rs 6,100 billion by Rs 25 billion.

This represents an increase of 29.1% over Rs4,744 trillion collected during the same time last year. The gross revenue collection grew from Rs4,996 trillion last year to a Rs6,460billion this year, a 29.3% increase. The FBR's outstanding performance is evident in the 32% increase in direct taxes over the previous year.

The policy of Government - Taxes

The policy of Government - Taxes

This is consistent with the government's policy to tax income earned and reduce indirect taxation. The net income tax collection for the year was Rs2,278 billion, compared to Rs1,731 trillion last year. However, Rs2,525 million of sales tax collections this fiscal year, compared with Rs1,983 billion last. This year's net customs duty collection is Rs1,000 billion, compared to Rs747 billion last. Federal excise duty collection is Rs322billion this year, compared with Rs284 billion last.

The net collection of Rs1,741 trillion during the fourth quarter of the financial year, compared to Rs1,351 miliarde collected in the fourth quarter last year, is an increase of 31.7%, despite many difficulties. The June 2022 net collection is Rs763 trillion, an increase of 28.9% from the June 2021 collection of Rs580 billion.

This is a remarkable year-on-year increase of 29.1%, especially considering that it comes on the heels of 31.7% growth during the fourth quarter. These numbers would continue to improve after the close of each day and after accounting adjustments.

However, refunds of Rs335 trillion pay during the year, which is 33.3% more than the Rs251 billion received in the previous year. The 55% increase in refunds from the 4th Quarter this year compared to the Rs68 billion issued last year was also evident. This was an increase of 43.8%.  This is a reflection of FBR's determination to quickly track refunds to avoid liquidity shortages in this industry.

High Revenue Performance

Field formations are effective in enforcing the law and ensuring a strong revenue performance. To document the retail sector, the FBR's POS System has integrated a total of 10,611 POS devices from 4,563 tier-1 stores across the country. Tier-1 retailers that were integrated with POS generated 425 million tax invoices. Six POS computerized draws were held, in which Rs318million was distributed among 6,042 lucky winners. It is encouraging to see that FBR invoices are increasing despite the resource crunch.

Large-Scale Manufacturing

Another watershed initiative of the FBR to capture Large Scale Manufacturing in the country via the Track & Trace System has already begun paying dividends. The current crushing season, which ran from December 2021 to March 2022 under the Track and Trade System, saw a 31% increase in sales tax collections from the sugar sector. This is compared to the Rs19.9billion for the same period. The current sugar production was also higher than the 5.67 million tons recorded in the previous crushing season. This represents a 39.7% increase from the previous year. The TTS will also cover the fertilizer and tobacco sectors in the first quarter of 2022-23.

Pakistan Customs

They also collected Rs 1 trillion in the year, against Rs747 billion under the head of customs duty in FY2020-21 against the target of Rs960billion. It exceeded its target by Rs40billion, which registered a significant growth of 34%. While Rs115 billion was collected in June 2022 under the head customs duty against Rs88 billion monthly target. This is 30% more than the monthly target. The duty drawback issued by Pakistan Customs in the past year was Rs33 billion, compared to Rs24 Billion.

Leave Your Comment

    Copyright © 2021 All Rights Reserved | Uncle Fixer Private LTD