FBR collects Rs948 billion as tax revenue during 2MFY23

FBR collects Rs948 billion as tax revenue during 2MFY23

ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs948 billion as tax revenue during first two months (July – August) of fiscal year 2022/2023, according to provisional data released on Wednesday.

The FBR surpassed the revenue collection target of Rs926 billion set for the period.

READ MORE: FBR announces tax exemptions for flood relief operation

According to the provisional data for the month of August 2022, the FBR has collected net revenue of Rs. 489 billion, which has exceeded the target of Rs. 483 billion against Rs. 448 billion collected during the same period, last year.

These figures would further improve after the book adjustments have been taken into account. These collections are the highest ever in the month of August.

This outstanding revenue performance is a reflection of FBR’s resolve to build on its growth trajectory despite floods, zero rating on POL products, and import compression, the FBR said.

READ MORE: KTBA demands suspending further tax due to practical issues

On the other hand, the gross collection increased from Rs. 462 billion during August last year to Rs. 526 billion, showing an increase of 14 per cent.

 Likewise, the amount of refunds disbursed during August was Rs. 37 billion compared to Rs. 14.3 billion paid last year, showing an increase of 161 per cent. This is reflective of FBR’s strong commitment to fast-track refunds and thereby prevent liquidity shortages in the industry.

The significant revenue increase in August is largely the outcome of various policy and revenue measures introduced by the government in Finance Act 2022. Unlike in the past, there is a visible focus on taxing the rich and affluent.

READ MORE: FBR gets 3.38 million active taxpayers by August 28, 2022

Owing to this paradigm shift, the growth in domestic Income Tax is almost 38 per cent which is a remarkable shift towards direct taxation. Likewise, there is a significant upsurge in Advance Tax collected during August, which is 72 per cent increase from the corresponding period of the previous year.

Provisional collection of Income Tax, Sales Tax, Federal Excise and Customs Duty were respectively Rs.165 billion, Rs. 218 billion, Rs.24 billion and Rs. 82 billion as against Rs.124 billion, Rs. 223 billion, Rs. 23 billion and Rs.77 billion during the corresponding period of the previous year.

READ MORE: Tax rates on mobile phone, internet users during 2022-2023

Leave a Reply

Your email address will not be published. Required fields are marked *