FBR needs Rs3.51 trillion during five months to achieve tax target

FBR needs Rs3.51 trillion during five months to achieve tax target

ISLAMABAD: Federal Board of Revenue (FBR) has required to collect Rs3.51 trillion during next five months (February – June) of this year in order to achieve fiscal year 2022-2023 collection target.

According to provisional data released on Tuesday, the FBR collected Rs3.965 trillion during first seven months (July – January) of current fiscal year 2022-2023.

The tax collection target for the current fiscal year is Rs7.47 trillion. This means the FBR requires to collect another Rs3.51 trillion or 47 per cent of the total amount for target achievement.

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Furthermore, the FBR collected Rs537 billion in the month of January 2023. Whereas, average monthly collection to achieve the fiscal year target is over Rs700 billion.

The FBR issued a press statement saying that it had demonstrated a commendable revenue collection performance during January 2023 and has not only achieved the monthly budgetary target of Rs. 533 billion but surpassed it by Rs. 4 billion.

According to provisional figures, FBR has collected Rs. 537 billion in the month of January 2023 thereby showing an impressive growth of 23 per cent compared to the same month last year.

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Cumulatively, FBR has collected Rs3.965 trillion in the first seven months of the current financial year against Rs3.367 trillion collected in the corresponding period of last year depicting a growth of 18 per cent.

The Third quarter of the current year started with an impressive performance and the team FBR is committed to meet the annual budgetary target of Rs 7.47 trillion for the current financial year despite economic challenges.

Direct taxes collection has grown at a robust pace, which has shown growth of 48 per cent during the first seven months of the current financial year which is reflective of Government’s policy of shifting tax burden to wealthy and affluent segments of society.

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It is also highlighted that the administrative and enforcement measures of the FBR have yielded the results which is reflected in the growth of direct taxes in special and the domestic taxes at large.

The growth in domestic taxes is 40 per cent during the same period. The contribution of domestic taxes has also increased from 50 per cent last year to 59 per cent during the current year.

Furthermore, it is also significant that the collection from Customs Duty has shown an increase of 16 per cent during the month of January 2023 as compared to the same month last year.

Additionally, FBR has not stopped short of taking care of exporters’ liquidity problems and has issued refunds of Rs. 208 billion during the first seven months of the current financial year as against Rs. 183 billion during corresponding period of last year which is 14 per cent more than the previous year’s issued refunds.

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FBR appreciates all those taxpayers whose due contributions helped in achievement of the budgetary target and also lauds the endeavors of all field formations and its officers for their untiring efforts and commitment to optimize revenue collection in challenging economic situation.

This growth in tax revenues, especially direct taxes, underscores the resolve of the Government and FBR to make Pakistan a prosperous nation to withstand financial shocks and bridge the fiscal deficit.