Tag: revenue collection

  • Revenue collection registers 27pc growth in first month of 2020/2021

    Revenue collection registers 27pc growth in first month of 2020/2021

    ISLAMABAD: Federal Board of Revenue (FBR) has started the fiscal year 2020/2020 with 27 percent growth in revenue collection for July 2020.

    The FBR collected Rs300 billion in July 2020 as compared with Rs236 billion in the same month of the last year, according to provisional figures released by the FBR on Thursday.

    Another significance of the monthly collection, the FBR has surpassed the assigned target for the month of July 2020 by Rs57 billion.

    The revenue collection target for the month was set at Rs243 billion. However, with the improved economic activities after ease in lockdown the FBR managed to reach Rs300 billion mark, which is 125 percent of the target.

    The Inland Revenue overshot the target by Rs52 billion, whereas the Customs Wing exceeded the target by Rs5 billion.

    To redress the hardships of the business community caused by Covid-19, an unprecedented amount of refunds to the tune of Rs15 billion have been disbursed during July 2020, as compared to refunds of Rs.7 billion during July 2019.

    Sales Tax refunds are being issued under centralized and automated system called FASTER which is clearing refunds to exporters within 72 hours for the first time as committed by the Government in July, 2020.

    This has facilitated the exporters and the industry easing off their liquidity crunch.

    According to the official figure, total customs duty collected during July, 2020 is over Rs. 42 billion which is 6 percent higher than that collected in same period of July 2019. This is despite the fact that there is less than 1 percent growth in import values during this period.

    The higher growth in FBR revenues is primarily on account of better supervision and improved administrative controls despite economic conditions caused by Covid-19 during which the country mostly remained in lockdown state.

    The revenue trajectory also beat the adverse impact of governments’ import compression policy.

    FBR is also engaging with trade and industry to mitigate their genuine grievances.

    FBR is proactively reaching out to Trade and Industry and resolving their issues. FBR has also launched an unprecedented crackdown on corruption dismissing and suspending about a dozen officers and officials only during the month of July 2020.

  • FBR to adopt new measures to achieve Rs4,963 billion collection target

    FBR to adopt new measures to achieve Rs4,963 billion collection target

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to take new enforcement and administrative measures to achieve revenue collection target of Rs4,963 billion assigned for current fiscal year.

    The federal government in the latest budget assigned FBR to collect Rs4,963 billion during 2020/2021, which is 25 percent higher than the collection of Rs3,957 billion collected during 2019/2020.

    In order to achieve the revenue collection target of current fiscal year the FBR chairman directed chief commissioners and chief collectors to submit their proposals and suggestions for taking new administrative and enforcement measures.

    The FBR sought the proposals for increasing revenues and plugging loopholes.

    All chief commissioners and chief collectors have been asked to furnish their proposals by July 15, 2020.

    It is worth mentioning that the FBR was assigned Rs5,550 billion revenue collection target during fiscal year 2019/2020 however due to slow economic activities early in the fiscal year and adverse impact on economy due to coronavirus the revenue collection significantly declined.

    Later considering the situation the FBR was assigned the reduced collection target of Rs3,907 billion, which was surpassed by more than Rs50 billion.

    Despite the achievement of revenue collection target the FBR chairperson Ms. Nausheen Javaid Amjad was removed from the post and Muhammad Javaid Ghani was assigned additional charge of the post of FBR chairman.

    Sources in the FBR said that the administrative and enforcement measures would only work when a regular chairman has been appointed.

  • SRB collects Rs105.9 billion in challenge economic situation

    SRB collects Rs105.9 billion in challenge economic situation

    KARACHI: Sindh Revenue Board (SRB) has collected Rs105.9 billion as sales tax on service during fiscal year 2019/2020 despite challenging economic situation due to COVID-19.

    According to a statement released on Wednesday the SRB collected Rs105.9 billion during fiscal year 2019/2020 as compared with Rs100.3 billion in the preceding fiscal year, showing 5.58 percent growth.

    Out of total collection the SRB collected Rs5.6 billion as workers welfare fund.

    “The milestone that SRB has reached represents a consistency of achievements, it has built since organization’s inception in 2011, courtesy the hard work and steadfastness demonstrated by its workforce, in work-culture dedicated to professional values,” according to the statement.

    The year 2019/2020 had a particular significance arising from COVID-19. The employees put in their best, working beyond the normal call of duty, despite the lockdown, six days – week in the face of difficult circumstances arising from the pandemic.

    The SRB also praised the taxpayers for their trust and cooperation ant the continuous support of the Sindh government without which the landmark performance of SRB would not have been possible.

    The SRB is now eying on an overall target of Rs135 billion during 2020/2021 with a year on year growth of 27.5 percent.

  • FBR surpasses fiscal year 2019/2020 collection target

    FBR surpasses fiscal year 2019/2020 collection target

    ISLAMABAD: Federal Board of Revenue (FBR) has surpassed revenue collection target of Rs3,907 billion for fiscal year 2019/2020, which was significantly lower due to coronavirus adverse impact on the economy.

    FBR official spokesman on Tuesday said that the tax authorities had surpassed the downward revised target of Rs3,907 billion and collected Rs3,957 billion be Tuesday evening.

    The spokesman said that the gross collection of the FBR also recorded above Rs4,000 billion for the first time in the history. The collection is considerably high considering the adverse impact of coronavirus.

    The collection in the month of June 2020 also recorded at Rs411 billion by 3:00PM on June 30, 2020 as against the June target of Rs398 billion.

    It is important to note that the FBR had lost around 30 officials due to the pandemic, which also included a grade 22 officer Muhammad Zahid Khokhar.

    The FBR praised its officials for their dedication toward revenue collection despite threat of COVID.

  • FBR assigned 27 percent higher revenue collection target in 2020/2021

    FBR assigned 27 percent higher revenue collection target in 2020/2021

    ISLAMABAD: Federal Board of Revenue (FBR) has been assigned 27 percent higher revenue collection target for fiscal year 2020 despite challenging economic conditions due to COVID-19.

    According to official documents of Budget 2020/2020, the FBR has been assigned revenue collection target of Rs4,963 billion during upcoming fiscal year as compared with expected current revenue collection of Rs3,908 billion during the outgoing fiscal year, which is Rs1,055 billion higher.

    The collection target under direct tax has been estimated at Rs2,043 billion during fiscal year 2020/2021 as compared with expected collection of Rs1,623 billion in the current fiscal year, which is Rs420 billion higher.

    Under direct tax collection, target for income tax has been estimated at Rs2,037 billion, workers welfare fund at Rs3.2 billion and capital value tax at Rs3 billion.

    The collection of indirect taxes has been estimated at Rs2,920 billion during next fiscal year as compared with existing estimated collection of Rs2,285 billion during the current fiscal year, which is Rs635 billion higher.

    Under indirect taxes, the collection target of customs duty has been set at Rs640 billion, sales tax at Rs1,919 billion and federal excise duty at Rs361 billion.

    Targets for collection of other taxes are included: ICT Rs20.47 billion; Mobile handset levey Rs5.8 billion; airport tax Rs25 million, Gas Infrastructure Development Cess (GIDC) Rs15 billion; National Gas Development Surcharge Rs10 billion etc.

    The collection of petroleum levy has been estimated at Rs450 billion for next fiscal year as compared with existing collection of Rs260 billion, which is 73 percent higher.

    The target for total tax revenue has been set at Rs5,464 billion during fiscal year 2020/2021 as compared with Rs4,208 billion expected to be collected during current fiscal year.

  • COVID-19 claims four more taxmen as IR offices open on Saturdays

    COVID-19 claims four more taxmen as IR offices open on Saturdays

    KARACHI: Four more officials of Inland Revenue have died of COVID-19 as field offices of Federal Board of Revenue (FBR) were remained opened on Saturday.

    The offices of Federal Board of Revenue (FBR) were remained opened on Saturday as four more officials of Inland Revenue died of coronavirus, sources said.

    The officers were posted at Large Taxpayers Unit (LTU) – II Karachi and Corporate Regional Tax Office (CRTO). These officers were included Masood Anwar, Riffat Kamal, Mirza Shahab Baig and Khawaja Muhammad.

    Earlier, three officials of RTO Quetta and RTO Faisalabad reportedly had also died of the infection.

    The sources said that score of cases had been tested positive in various RTOs and LTUs across the country in recent days.

    Latest statistics updated on Saturday reported that the cases of COVID-19 increased to 93,983 out of which 1,935 deaths were reported.

    The sources said that during 10 -15 days the cases had been reported at more faster pace in the FBR.

    However, despite the fact the FBR had decided to open the IR offices on Saturdays.

    A notification issued by the FBR a day earlier stated that the IR offices would observe normal working day on Saturdays from June 06 to June 30, 2020.

    The decision to open the offices was taken to achieve Rs415.5 billion during June 2020 in order the meet the revenue collection target of around Rs3,933 billion for the current fiscal year.

  • FBR decides opening IR offices on Saturdays as coronavirus spreads rapidly

    FBR decides opening IR offices on Saturdays as coronavirus spreads rapidly

    ISLAMABAD: Federal Board of Revenue (FBR) has decided to open its field offices on Saturdays to meet monthly target of Rs415 billion despite rapid spread of coronavirus, which already claimed lives of tax officials.

    The FBR on Thursday issued a notification directing all chief commissioners of Large Taxpayers Units (LTUs), Regional Tax Offices (RTOs) and Corporate RTOs to observe Saturdays as normal working hours till June 30, 2020.

    “In order to enhance the efforts to meet the assigned revenue target of Rs415.5 billion for the current month [June 2020], all field offices will remain open on the Saturdays with effect from June 06, 2020 till June 30, 2020,” the notification said.

    FBR sources said that at least three tax officials had died of coronavirus during the past two days. Islah ud Din, Assistant Commissioner, RTO Quetta died on coronavirus on June 04, 2020. While, two other officials of RTO Faisalabad also lost their lives due to the pandemic.

    The sources said that there were many cases in field offices some were tested positive and others were yet to gone through the test.

    It is also worth mentioning that during past 10-15 days the cases were rapidly increased in the country.

    First corona case was reported in Pakistan during February 2020 and then the Sindh province was the first to impose lockdown on March 23, 2020. This resulted in halt of business activities and subsequent affected the revenue collection efforts.

    The revenue collection in May 2020 registered 31 percent decline to Rs227 billion as the collection was Rs330 billion in same month last year.

    The FBR sources said that same collection position would prevail during June 2020 as most of the collection was to be received of May 2020. The entire month of May was also under lockdown besides long holidays for Eid-ul-Fitr.

    The FBR collected Rs518 billion in June 2019. If consider 31 percent decline in June as well the collection for June 2020 may be at Rs358 billion.

    The FBR collected Rs3,518 billion during July – May 2019/2020 as compared with Rs3,266 billion collected in the corresponding period of the last fiscal year, showing growth of 7.7 percent.

  • Budget 2020/2021 preview: Ambitious tax collection target likely with less weight on documentation

    Budget 2020/2021 preview: Ambitious tax collection target likely with less weight on documentation

    KARACHI: The government likely to set an ambitious revenue collection target for budget 2020/2021 with less focus on documentation of economy in order to promote business.

    According to Budget 2020/2021 preview released by Topline Securities on Thursday, the government is expected to announce the Federal Budget for FY21 on June 12, 2020.

    The budget is likely to take into account the implications of COVID-19 outbreak, where it will try to ease the pain of the masses due to the pandemic by focusing on job creations and relief for the businesses.

    The analysts at Topline Securities expect IMF to show some leniency with the government in setting targets for next year, taking into account the impact of COVID-19 outbreak.

    The key challenge for the govt. will be restricting the fiscal deficit for the upcoming year as not only the govt. will have to factor in higher expenditures relating to COVID-19 outbreak, but also take hit on revenues because of the slowdown in overall economy.

    The government is already facing the prospect of registering a huge fiscal deficit of 8.0-9.0 percent of GDP in FY20 (primary deficit 3-4 percent).

    They believe the government will try to restrict the fiscal deficit in the budget to 8.5-9.0 percent of GDP for FY21 (6.5-7.0 percent excluding COVID-19 expenses), where expenditures relating to COVID-19 are likely to be marked separately.

    Recall that IMF had agreed to not include the expenses incurred on combating COVID-19 as part of budget deficit for FY20.

    They believe the same relief can be extended for 2020/2021 as well.

    They said the government is likely to earmark Rs1 trillion for dealing with COVID-19 pandemic and for providing relief to the business community.

    Considering the recession, the government may try to boost the economy through providing incentives to the agriculture sector.

    The government may give shape to earlier announced subsidy on fertilizers, tractors etc., which was part of the Rs50 billion Agriculture package along with few more steps.

    The government is also likely to focus on the construction industry in the Budget 2020/2021, where the government believes such relief measures can provide ease for the daily wagers.

    One of the measures is likely to include reduction in Federal Excise Duty (FED) on Cements. The government has already announced a construction package to support the economy.

    The analysts believe the government is likely to be less vocal about the documentation of the economy (unlike in recent previous budgets), as it may hurt the businesses.

    The analysts further said FBR is reportedly considering increasing the limit for providing Computerized National Identity Card (CNIC) on purchases of Rs50,000 to Rs100,000 in the upcoming budget.

    The government may announce relief measures with respect to reduction in import duties, taxes on essential food items etc.

    The government last year had increased these duties to curb the Current Account Deficit, which as desired resulted in contraction of imports but also led to a lower collection of import duties as quantity of imports fell.

    The government is in talks with the IMF to set the revenue collection target for the next year. The government wants to keep the FBR revenue collection target at around Rs4,800 billion, whereas IMF wants the same to be close to Rs5,100 billion (vs. Rs3,900-4,100 billion likely to be collected in 2019/2020).

    The analysts believe the government will once again set an ambitious FBR revenue collection target of Rs4,800-5,100 billion, which we believe will be difficult to achieve.

    Assuming nominal GDP growth, the government is likely to achieve FBR Revenue collection of Rs4,400-4,600 billion in the upcoming year, assuming smart lockdown ends by Jul-Aug 2020.

    The government can look to generate additional Rs75-100 billion in the form of Petroleum Levy in 2020/2021. Last year the target was set at Rs216 billion. The government can potentially generate Petroleum Levy in the range of Rs300-350 billion in 2020/2021 due to the decline in international oil prices.

    The government may look to increase taxes on beverages and cigarettes to bring them in line with other countries.

    The government may also look to impose/increase taxes on luxury items like farmhouses, passenger cars etc.

    The analysts believe a mini-budget in the later part of the year, especially if (1) the economy recovers slower-than-expected from the COVID-19 pandemic, (2) there are unforeseen developments due to COVID-19 and/or (3) global recession prolongs further.

    The government will try to cut expenses, including (1) Development Expenditures, (2) Current Expenditures and (3) Subsidies while making FY21 estimates.

    The Federal Public Sector Development Program (PSDP) is expected to be around Rs550-600 billion for FY21 compared to last year’s budgeted target of Rs700 billion. The utilization of PSDP this year is likely to be between Rs575 billion -600 billion.

    The Current Expenditure is likely to benefit from lower interest rates, where the govt. is likely to save around Rs600-700 billion in interest savings (from FY20 actual interest cost) and Rs800-900 billion from last year’s budgeted amount of Rs2.9 trillion.

    The government is reportedly also likely to reduce the Power Sector subsidy by Rs30-50 billion (vs. FY20 target of Rs272 billion), aided by lower international oil prices and interest rates.

    In total, the government can potentially save Rs600 billion -700 billion from the above without trimming down its Current Expenditures and Defense Expenditure.

    Government is likely to allocate Rs1,000 billion separately for COVID-19 pandemic for providing relief to the masses and the business community. The government can further extend relief to the daily wagers through cash payments, suspension of utility payments for small consumers etc.

    The government may make the Agriculture package part of the Federal budget with a few more additions. The package already includes a subsidy of Rs37 billion to farmers on fertilizers in the form of Rs925/bag on DAP and Rs243/bag on Urea.

    It also includes a subsidy of Rs2.5 billion on Sales Tax on locally-manufactured tractors for a period of one year, and Rs8.8 billion subsidy is for mark-up on loans.

    The government may provide some relief for the construction industry as well, in the shape of lower taxes and/or other measures to support the economy, Naya Pakistan Housing Program and construction of dams.

    Salaries and pensions of government employees may be increased.

    Tax rate on essential food items is likely to be reduced.

    Likely introduction of a centralized loyalty program to provide more incentives to overseas Pakistanis sending remittances. Under this loyalty program, children of overseas Pakistanis will be given 50 percent discount in the Overseas Pakistanis Foundation (OPF) schools and colleges.

    Regulatory and additional customs duties are also likely to be reduced by up to 2 percent. Currently, these duties range between from 2-7 percent.

    Minimum tax exemption limit on salaried class may be increased.

    As per news reports, government is also prioritizing higher allocation to safety net programs like Ehsaas and Kamyab Jawan Program.

  • FBR records 31 percent decline in May collection

    FBR records 31 percent decline in May collection

    ISLAMABAD: Federal Board of Revenue (FBR) has recorded 31 percent decline in revenue collection during May 2020 owing to halt in economic activities after lockdown imposition.

    According to provisional figures released by the FBR on Sunday, the tax authorities collected Rs227 billion in May 2020 as compared with Rs330.1 billion collected in the same month of the last fiscal year.

    The massive fall in revenue collection has been attributed to halt in business activities due to lockdown which was imposed to stop spread the coronavirus.

    FBR spokesman in a statement said that despite lockdown in the country the revenue body collected Rs3,518 billion during July – May 2019/2020 as compared with Rs3,266 billion in the corresponding period of the last fiscal year.

    The revenue collection for the current fiscal year has been reduced to Rs3,908 billion from actual target of Rs5,500 billion initially set for the current fiscal year.

    The spokesman said that the FBR so far collected around 90 percent of the assigned target of Rs3,908 billion.

  • FBR collection falls by 13.4 percent in April

    FBR collection falls by 13.4 percent in April

    ISLAMABAD: The revenue collection has registered 13.4 percent decline in April 2020 over the corresponding month of the last year, due to ongoing lockdown to contain spread of coronavirus.

    According to provisional statistics of Federal Board of Revenue (FBR), the collection of duty and taxes fell to Rs256.68 billion in April 2020 as compared with Rs296.58 billion in the corresponding month last year.

    The FBR issued refunds in April 2020 to the tune of Rs 15.12 billion, which is 127 percent higher when compared with Rs6.66 billion in the corresponding month last year.

    Moreover, the Rs16 billion as refunds have been issued to exporters, Rs33 billion as arrear refunds and Rs15 billion as duty drawback in April 2020.

    The total collection of the FBR during first ten months (July – April) 2019/2020 increased to Rs3,408.83 billion showing an increase of 10.4 percent compared with the Rs3047.95 billion collected during the corresponding period of the last fiscal year.

    The refunds of Rs116.961 billion have been issued during first ten month of current fiscal year, which was Rs6.515 billion during July – April 2019/2020.

    The FBR has collected the target revenue of Rs200 billion for April 2020 and collected Rs256 billion out of revised annual revenue target of Rs3908 billion for the current Financial Year.