ISLAMABAD: Federal Board of Revenue (FBR) is required Rs1,306 billion during the last quarter (April-June) to achieve revised downward target of Rs4,700 billion set for the current fiscal year.
According to provisional figures released by the FBR on Wednesday, the net collection was Rs3,394 billion during the first nine months (July – March) 2020/2021 as compared with Rs3,3,076 billion in the corresponding months of the last fiscal year, showing an increase of 10 percent.
The collection in the first nine months of the current fiscal year has also exceeded by over Rs100 billion against the target of Rs3,287 billion set for the period.
The original revenue collection target for the current fiscal year was set at Rs4,963 billion. However, sources in the FBR said that the target has been revised downward to Rs4,700 billion.
Therefore, the FBR is required to collect more Rs1,306 billion in the remaining three months of the current fiscal year to achieve the target.
According to a statement issued by the FBR, the net collection for the month of March 2021 was Rs.475 billion, against a required increase of Rs.367 billion, representing an increase of 46 percent over Rs.325 billion collected in March 2020 and 129 percent of the target.
“The year-on-year growth of 46 percent is unprecedented. These figures would further improve before the close of the day and after book adjustments have been taken into account,” the FBR said.
On the other hand, the gross collections increased from Rs.3,178 billion during this period last year to Rs.3,571 billion this year, showing an increase of 13 percent.
The amount of refunds disbursed was Rs.177 billion compared to Rs.102 billion paid last year, showing an increase of 74 percent. 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. During April-June 2021, it is expected that this revenue performance would be improved substantially compared to 2020 when economic activities were disrupted due to COVID.
Meanwhile, FBR’s efforts to broaden the tax base are expending apace. Early signs suggest such efforts are bearing fruits. As on 28-2-2021, income tax returns for tax year 2020 have reached 2.8 million compared to 2.6 million last year, showing an increase of 8 percent. The tax deposited with returns was Rs.51 billion compared to only Rs.33.0 billion, showing an increase of 54 percent.
It may be recalled that last year the final date for submission to returns was 28th February. FBR’s decision to adhere to 8th December as the last date has been vindicated as more returns and higher tax payments have been recorded during the tax year 2020 compared to 2019.
Moreover, a number of 123,680 new Income Tax Returns have been received for Tax Year 2020 resulting into collection of additional tax of Rs. 511 million.
Sales tax returns for the period from July 2020 to February 2021 have reached 179,584 whereas they were 167,769 in the corresponding months last year, showing an increase of 7.04 percent. The sales tax paid with returns is 624 billion this year which was 536 billion last year, showing an increase of 16.41 percent.
FBR has also released the information about Tier-I retailers who have been integrated with POS system. According to the information, 10283 sales points have been integrated with Point of Sales Linked Invoicing System.