Islamabad, February 29, 2024 – The Federal Board of Revenue (FBR) has outperformed its revenue collection target for the first eight months (July – February) of the fiscal year 2023-24, demonstrating robust economic recovery and fiscal management.
(more…)Tag: revenue collection
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FBR’s Fiscal Fumble: Misses Rs 7.2 Trillion Tax Target for FY23
Karachi, July 28, 2023 – The Federal Board of Revenue (FBR) fell short of its fiscal year 2022-23 tax collection target, as revealed by the finance ministry in a monthly report for July 2023.
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FBR Falls Short of Tax Collection Target for May 2023
The Federal Board of Revenue (FBR) in Pakistan faced a setback in May 2023 as it failed to meet the tax collection target by Rs49 billion. Despite achieving growth in certain areas, a combination of reduced imports, a sluggish economy, and revised GDP growth rates posed challenges for the FBR.
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FBR unveils plan to achieve Rs7.47 trillion revenue collection target
ISLAMABAD: Federal Board of Revenue (FBR) has unveiled strategy to achieve revenue collection target of Rs7.47 trillion during the ongoing fiscal year 2022-2023.
Officials in the FBR on Thursday said that revenue target for 2022-2023 has been fixed at Rs7.47 trillion which demands growth of 21.5 per cent over the collection of Rs6.148 trillion made during the last fiscal year.
READ MORE: Customs officer awarded major penalty of rank demotion
In absolute terms, around Rs1.32 trillion additional revenues are to be collected by the FBR in the current fiscal year to meet the target.
The target for 2022-2023 is challenging given the fact that government is focusing on controlling the current account deficit and rising inflation which would result in import contraction and slowdown in the overall GDP growth.
READ MORE: FBR surpasses first quarter collection target by Rs27 billion
Nonetheless, FBR is confident that its team has the ability and the resolve to accomplish this gigantic task as an upward revised target has already been achieved for the financial year ended on June 30, 2022.
“To achieve the target several efforts are being made at policy as well as operational levels. There is focus on enhanced use of technology and a policy shift towards taxing the high-income groups through direct taxation such as the imposition of Super Tax, Poverty Alleviation Tax, revision of individual tax slabs including salaried class, increase in Federal Excise Duty (FED) on international air travel, increased tax on luxury motor vehicles etc,” according to the officials.
READ MORE: FBR extends return filing date up to October 31, 2022
Keeping in view the past performance of FBR and the revenue measures taken during the current budget there are high hopes of achieving the tax target for fiscal year 2022-2023.
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LTO Karachi surpasses FY22 collection target
KARACHI: Large Taxpayers’ Office (LTO) Karachi surpasses the target of revenue collection of Rs.1,595 billion during the fiscal year 2021-2022.
The LTO, Karachi has collected Rs.146 billion excess amount, as it was assigned the target of Rs.1,449 billion for the fiscal year 2021-2022.
READ MORE: LTO Karachi collects Rs1.4 trillion July – May
The LTO Karachi has also surpassed the budgetary target fixed at Rs.170 billion during the month June 2022, by collecting a massive amount of Rs.196 billion in all taxes.
Large Taxpayers Office, Karachi has shown remarkable achievement by collecting Revenue at Rs.1,595 billion in all taxes during the period July 2021 – June 2022 as against Rs.1,124 billion collected previous year showing an overall growth of 42 percent vis-à-vis overall collection made during the same period last year.
READ MORE: LTO Karachi posts 41% collection growth in 10 months
Overall budget target assigned to LTO Karachi by the Federal Government for the period July 2021 to July 2022 was Rs.1,449 billion against which LTO Karachi has achieved Rs.1,595 billion which is Rs.146 billion in excess of the assigned target.
During the month of June 2022, Large Taxpayers Office, Karachi (Federal Board of Revenue) has also surpassed budgetary target fixed at Rs.170 billion by collecting gigantic Rs.196 billion (all taxes) against the target fixed by the Government.
READ MORE: LTO Karachi surpasses Rs1 trillion mark in 8MFY22
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FBR nears to achieve revenue collection target for 2021/2022
KARACHI: Pakistan’s apex tax agency has almost achieved the revenue collection target of Rs6.1 trillion for fiscal year 2021/2022.
According to FBR sources the revenue collection has crossed the ambitious mark of Rs6 trillion by midday of June 28, 2028. “The FBR needs another Rs100 billion to surpass the revised upward revenue collection target for the outgoing fiscal year,” a senior FBR official said.
READ MORE: All tax proposals of IT sector accepted: FBR
The actual revenue collection target for the FBR was Rs5.9 trillion. However, under the IMF program and excellent revenue collection performance throughout the year, the revenue collection target was revised upward to Rs6.1 trillion.
The sources said that the FBR is likely to surpass the collection target by today (June 28, 2022) evening as only Rs100 billion is left to achieve the target.
READ MORE: Pakistan’s salaried class unhappy over new tax changes
The FBR has further two days i.e. June 29 and June 30 to finish the fiscal year 2021/2022.
According to the Rs6 trillion breakup of revenue collection made available, the FBR collected Rs2.21 billion as income tax; Rs2.77 trillion as sales tax; Rs320 billion as federal excise duty; Rs1.01 trillion as customs duty.
READ MORE: Pakistan reduces salary tax slabs to 7 in budget 2022/23
The gross collection of the FBR till Midday of June 28m 2022 comes at Rs6.305 trillion. The revenue body granted an amount of Rs305 billion as refunds that makes the net revenue collection at Rs6 trillion.
The sources said that the FBR has achieved around 98.3 per cent of the target so far. The comparative numbers with the last fiscal year, the revenue collection targets in income tax, sales tax, federal excise duty and customs duty has been achieved as 98 per cent, 98 per cent, 95 per cent and 102 per cent, respectively.
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Pakistan tax offices to work extended hours for revenue collection
ISLAMABAD: Pakistan tax offices have been directed to work extended hours on the last two days of the current fiscal year i.e. June 29, 2022 and June 30, 2022 for collection of duty and taxes.
The Federal Board of Revenue (FBR) on Friday directed that all Large Tax Offices (LTOs), Medium Tax Office (MTO), Corporate Tax Offices (CTOs) and Regional Tax offices (RTOs) would remain open and observe extended working hours till 10:00 PM on Wednesday, June 29, 2022 and till 12:00 AM on Thursday, June 30, 2022, to facilitate the taxpayers in payment of duties and taxes.
READ MORE: Pakistan slaps super tax on industries, individuals
Chief Commissioners Inland Revenue have been asked to establish liaison with State Bank of Pakistan (SBP) and authorized branches of National Bank of Pakistan (NBP) to ensure transfer of tax collected by these branches to the respective branches of SBP on the same date to account for the same towards collection for the month of June, 2022 as per SBPs’ letter dated June 23, 2022.
The SBP in its letter stated that pursuant to FBR’s request for opening of banks’ branches for extended hours on 29th and 30th June 2022, and same day settlement of tax collections, following instructions, regarding observance of banking hours on 29th and 30th June 2022, are issued for compliance to facilitate the taxpayers:
READ MORE: Key tax measures taken through Finance Bill 2022
The SBP-BSC offices and NBP branches (A, B and C category) shall observe extended banking hours till 8:00 PM and 12:00 AM on 29th and 30th June 2022, respectively for collection of government taxes and duties through manual mode as well as ADC’s Over-the-Counter (OTC) facility.
In order to ensure same day settlement of tax collections on 30th June 2022 following special clearing and settlement will be arranged through M/s. NIFT and 1Link:-
READ MORE: FPCCI identifies tax anomalies in budget 2022-2023
M/s NIFT shall arrange special clearing at 12:00 AM on 30th June 2022 for same day clearing of payment instruments. M/s NIFT shall submit final returns to SBP-BSC offices for settlement by 10:00 AM on July 01, 2022.
M/s 1Link shall arrange to provide the settlement batch of transactions executed through ADCs platform till 12:00 AM on 30th June 2022 by 09:00 AM on July 01, 2022 to the SBP for settlement in government accounts.
READ MORE: Pakistan announces massive tax reduction for salaried persons
NBP branches shall settle their transactions of 30th June 2022 with respective SBP-BSC field offices / head office latest by 12:00 PM next day i.e. July 01, 2022.
Further, in order to eliminate the issue of spillover of tax receipts. NBP shall ensure that no instrument concerning government receipts, lodged in aforesaid office hours, shall remain unattended at any NBP branch and shall be settled in the value date of 30th June 2022 through special clearing.
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FBR collects Rs5.35 trillion in 11 months; up by 28.4%
ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs5.35 trillion during first 11 months of the current fiscal year 2021/2022.
The latest collection is about 28.4 per cent higher over the collection of Rs4.16 trillion during the same period last fiscal year, the FBR said on Tuesday.
READ MORE: FBR surpasses collection target for July – April FY22
The net collection for the month of May, 2022 realized Rs 490 billion represents an increase of 26.8 per cent over Rs 387 billion collected in May, 2021.
On the other hand, the gross collection of the FBR increased to Rs5.64 trillion during first eleven months of the current fiscal year as compared with Rs4.39 trillion in the corresponding months of the last fiscal year.
READ MORE: March collection up over 20% amid political unrest: FBR
The FBR released an amount of Rs30.4 billion as refunds in the month of May 2022 as compared with Rs21.1 billion refunds released in the same month of the last year, showing a growth of 44.3 per cent.
Similarly, refunds worth Rs 295.5 billion disbursed during first eleven months of the current fiscal year as compared with Rs224.2 billion in the same period of the last fiscal year, showing an increase of 32 per cent.
READ MORE: FBR posts 30% revenue collection growth in 8MFY22
Needless to add that the ongoing unprecedented and constant growth trajectory in revenue collection has been achieved despite massive tax relief given by the government on various essential items to common man.
For the first time ever in the country’s history, Sales Tax on all POL products has been reduced to zero which cost FBR Rs. 45 billion in May, 2022. It is also worth sharing that FBR has introduced a number of innovative interventions both at policy and operational level with a view to maximize revenue potential through digitization, transparency, and taxpayers’ facilitation.
READ MORE: FBR collects Rs2.92 trillion in first half of FY22
This has not only resulted in ensuring transparency, taxpayers’ facilitation, and the ease of doing business but also translated in a healthy and steady growth in revenue collection.
Likewise, the incumbent top leadership of FBR has launched a new culture of clean taxation with a clear focus on collecting only the fair tax and not holding up refunds which are due to be paid.
This has not only fast-tracked the process of bridging the trust-deficit between FBR and Taxpayers but also ensured the much-needed cash liquidity for business community. That’s precisely why FBR continues to surpass its assigned revenue targets despite challenges and price stabilization measures adopted by the government.
READ MORE: FBR eyes Rs6 trillion collection in current fiscal year
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LTO Karachi collects Rs1.4 trillion July – May
KARACHI: Large Taxpayers Office (LTO) Karachi has collected Rs1.4 trillion during first 11 months (July – May) of fiscal year 2021/2022, showing a 41 per cent growth over the corresponding period last year.
According to a statement issued on Tuesday, the LTO Karachi collected Rs1.4 trillion during first 11 months of the current fiscal year as compared with Rs992 billion in the corresponding months of the last fiscal year, showing a sharp increase of 41 per cent.
READ MORE: LTO Karachi posts 41% collection growth in 10 months
The LTO Karachi is the largest revenue collection arm of the Federal Board of Revenue (FBR). It collects around 35 per cent of the revenue collection collected at national level.
The LTO Karachi also surpassed the assigned target of revenue collection for the period of July – May 2021/2022.
READ MORE: LTO Karachi surpasses Rs1 trillion mark in 8MFY22
The tax office has been assigned Rs1.28 trillion as collection target for the period under review. It collected Rs1.4 trillion to surpass the target by Rs117 billion.
The LTO Karachi also surpassed the monthly target for May 2022. The tax office collected a huge amount of Rs130 billion in the month of May 2022 as against the assigned target of Rs125 billion.
READ MORE: LTO Karachi facilitates Tier-1 retailers in POS integration
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FBR surpasses collection target for July – April FY22
ISLAMABAD: The Federal Board of Revenue (FBR) has surpassed revenue collection target for the first 10 months (July – April) 2021/2022 (FY22) and collected Rs4.86 trillion, a statement said on Saturday.
The provisional collection showed the FBR collected Rs4.86 trillion during the first ten months of the current fiscal year as against the target of Rs4.346 trillion. The FBR collected Rs239 billion above the revenue collection target.
READ MORE: March collection up over 20% amid political unrest: FBR
The revenue body also posted a growth of 28.6 per cent to collect Rs4.86 trillion during the period under review as compared with the revenue of Rs3.778 trillion in the corresponding months of the last fiscal year.
READ MORE: FBR posts 30% revenue collection growth in 8MFY22
The monthly collection showed an increase in collection of 25 per cent. The FBR collected Rs480 billion during April 2022 as compared with Rs383 billion in the same month of the last year.
The FBR said that it had agreed to a target of Rs6.1 trillion with the International Monetary Fund (IMF). However, it was never made a target for revenue collection. The actual revenue collection target was Rs5.829 trillion for the fiscal year 2021/2022.
READ MORE: FBR collects Rs2.92 trillion in first half of FY22
The FBR would need Rs484.5 billion per month to achieve initial target of Rs 5.829 trillion and Rs 621 billion each in May and June to achieve revised target of Rs 6100 billion. The present government is determined to collect Rs.6100 in the current fiscal year.
READ MORE: FBR eyes Rs6 trillion collection in current fiscal year