ISLAMABAD: The Federal Board of Revenue (FBR) has achieved a remarkable milestone by collecting net revenue of Rs 458 billion during July 2022. This collection has surpassed the monthly target of Rs 443 billion by Rs 15 billion, as confirmed by an official statement issued by the FBR on Monday.
The figures indicate a notable 10% growth compared to the Rs 417 billion collected during the same period last year. These numbers are expected to improve further once book adjustments are finalized.
This achievement represents the highest-ever revenue collection for the month of July, underscoring FBR’s commitment to sustaining its growth trajectory established in the previous fiscal year. The gross revenue collected increased from Rs 438 billion in July last year to Rs 486 billion, reflecting an 11% growth. Additionally, the refunds disbursed by FBR rose by 32%, climbing to Rs 28 billion compared to Rs 21 billion disbursed during July 2021. This demonstrates FBR’s dedication to accelerating refunds to ease liquidity challenges in various industries.
The significant revenue surge is attributed to several policy and revenue measures introduced in the Finance Act 2022. Unlike earlier trends, there has been a shift toward taxing the affluent, with domestic taxes contributing 55% of the total collection, surpassing import taxes, which now account for 45%. This marks a reversal of the previous pattern, where taxes at the import stage constituted 52-53% of overall revenue.
FBR has also recorded 31% growth in domestic income tax, reflecting progress toward strengthening direct taxation. A notable example includes a 118% increase in advance tax collected on property sales under Section 236-C, driven by changes in withholding provisions. Similarly, an 40% rise in advance tax under Section 147, particularly from banking companies, is due to revised tax rates.
The Federal Excise Duty (FED) on tobacco products has yielded record growth of 47%, contributing an additional Rs 2.6 billion. The corresponding 67% surge in sales tax from the tobacco sector further highlights the impact of enhanced tax measures. The FED on international air travel also registered over 200% growth during July.
FBR’s customs collections reached Rs 67 billion, a slight increase of 2.58% compared to last year. However, this fell short of the Rs 77 billion target due to government policies aimed at curbing imports and stabilizing foreign reserves. The zero-rating of POL products resulted in a sales tax loss of approximately Rs 11 billion.
Additionally, the FBR reported a 13% rise in income tax returns for Tax Year 2021, reaching 3.4 million compared to 3.0 million in 2020. Tax deposits with returns grew by 46%, climbing to Rs 76 billion from Rs 52 billion the previous year.
To enhance transparency and streamline tax collection, FBR has integrated 23,265 point-of-sale (POS) terminals nationwide, enabling real-time reporting for Tier-1 retailers. This initiative reflects FBR’s ongoing efforts to modernize and expand the tax base.