Imran hails record FBR collection in July

ISLAMABAD: Revenue collection in July rose to Rs413 billion, which was an increase of over 36 per cent from last year’s figure, provisional data released by the Federal Board of Revenue (FBR) showed on Saturday.

The collection rise amounted to Rs71bn and was 21pc more than the target set for the month, the data said.

This achievement prom­pted Prime Minister Imran Khan to appreciate the efforts of the tax officials.

Taking to Twitter, the prime minister said: “I commend efforts of FBR in achieving record revenue collection in July,” adding that “this is a reflection of government’s policies for sustained economic growth and revival”.

The data for revenue collection in the first month of the current fiscal year showed a sharp acceleration in economic activity, leading to a higher collection in sales tax and customs duty.

The government, while preparing the budget for the ongoing fiscal year, had assured the International Monetary Fund (IMF) to raise Rs5.829 trillion in FY22 against Rs4.721tr collected in FY21.

Finance Minister Shaukat Tarin held an assurance to the IMF to collect the revenue through existing policies without additional taxation measures.

Until July 31, as per provisional figures, the revenue collection stood at Rs413bn against the projected target of Rs342bn. Compared to the collection of Rs303bn in July 2020, this year’s collection posted a growth of 36pc.

The amount of refunds disbursed in July 2021 was Rs20bn compared to Rs16bn last year, showing an increase of 28pc. Sales tax refunds are being issued under centralised and an automated system called ‘FASTER’, which clears refunds to exporters within 72 hours for the first time.

In July, the income tax collection stood at Rs135bn as against Rs107bn in the same month last year – an increase of 27pc.

The target for the income tax was projected slightly higher than the previous year’s collection of Rs94bn.

In the outgoing fiscal year, the income tax collection remained short of target despite several revenue measures.

The sales tax collection reached Rs209bn against last year’s Rs144bn, showing a growth of 45pc, whereas the target projected was Rs167bn, which was slightly higher than last year’s collection.

An impressive revenue collection came from petroleum products after the government increased prices.

The growth was witnessed due to an increase in fuel prices and imports and revival of economic activities during the period under review.

The FED collection jumped to Rs22bn as against Rs18bn collected during the same period last year. The FED target for the month was projected at Rs22bn.

Customs collection stood at Rs68bn during the July 2021period as against Rs49bn over the last year, indicating a growth of 37pc. The target projected under customs was Rs59bn for the period under review. In July, customs collection posted an impressive growth indicating revival of economic activities in the country and increase in regular imports of smuggled prone items at ports.

Meanwhile, an official statement of the FBR said the revenue figures would further improve before the close of the day and after book adjustments had been taken into account.

These collections are the highest ever in the month of July.

This outstanding revenue performance is a reflection of sustained economic revival spurred by government policies, the statement said.

Income Tax Returns for Tax Year-2020 have reached Rs3.53 million compared to Rs2.72 million in Tax Year-2019, showing an increase of 30pc while the tax deposited with returns was Rs51bn compared to only Rs33bn last year – an increase of 54pc.

According to information released by the FBR, 11,744 points of sale terminals have been integrated with real time reporting system of the FBR. During July 2021, smuggled goods worth Rs3.6 billion were seized.

Published in Dawn, August 1st, 2021

from The Dawn News - Home https://ift.tt/3jfrq3M