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Tag: revenue collection

  • FBR needs Rs2,500 billion in last four months to achieve revenue collection target

    FBR needs Rs2,500 billion in last four months to achieve revenue collection target

    ISLAMABAD: Federal Board of Revenue (FBR) has to collect around Rs2,500 billion during last four months (March – June) 2020 in order to achieve revenue collection target of Rs5,238 billion set for the fiscal year 2019/2020.

    The FBR provisionally collected Rs2,714 billion during first eight months (July – February) 2019/2020 as compared with Rs2,331 billion collected in the corresponding months of the last fiscal year, showing around 16.5 percent growth.

    However, so far collection of the FBR is not sufficient for reaching the collection target for current fiscal year. The average monthly collection target during first eight months of the current fiscal year is Rs339.25 billion. While the revenue is required to collect revenue at monthly average of Rs625 billion, which appears to be an uphill task for the tax machinery.

    The FBR collected Rs1,495 billion in the last four months (March – June) 2018/2019. In case maintain the growth pace of 16.5 percent then the FBR may able to collect Rs1741.67 billion during the last four months of current fiscal year.

    Therefore, the FBR may able to reach total collection of Rs4,456 billion during the current fiscal year. Therefore, the estimated shortfall in revenue collection may be hit at Rs782 billion for the current fiscal year.

    The FBR was initially given Rs5,550 billion revenue collection target for the fiscal year 2019/2020. However, the authorities were not optimistic to meet the target, therefore, in consultation with the IMF the revenue collection target was downgraded to Rs5,238 billion.

    The tax authorities are estimating collection of around Rs2.45 trillion by June 30, 2020.

    In recent document on budgetary achievement in first six months of current fiscal year, the finance ministry admitted the revenue collection target was historically high and challenging. The finance ministry also pointed out lower collection due to economic slowdown and contraction in consumption.

  • LTU Karachi posts 15% growth in revenue collection

    LTU Karachi posts 15% growth in revenue collection

    KARACHI: Large Taxpayers Unit (LTU) Karachi has registered 15 percent growth in revenue collection during first seven months of current fiscal year, a statement said on Monday.

    The LTU Karachi said that it had collected Rs796 billion during July – January 2019/2020 as compared with Rs690 billion in the corresponding period of the last fiscal year.

    The unit collected Rs108 billion during January 2020 as compared Rs92 billion collected in the corresponding month of the last year.

    The payment of refunds including income tax and sales tax has increased by 42 percent during the period under review. The unit paid Rs31 billion as refunds during first seven months of current fiscal year as compared with Rs22 billion in the corresponding months of the last year.

    The unit attributed the collection growth to strong enforcement as well as on site monitoring of production of various sectors including oil, gas, sugar and cement.

    Further, various tax evasion and tax avoidance cases have been detected, which are under investigation and substantial tax collection is expected during the coming months of current fiscal year, the unit said.

    Besides, during the month of January, current and arrear demand has been recovered at Rs2.7 billion against Rs2.5 billion for the corresponding month of the last year.

  • LTU Karachi collects Rs688 billion in first half

    LTU Karachi collects Rs688 billion in first half

    KARACHI: Large Taxpayers Unit (LTU) Karachi has collected Rs688 billion during first six months (July – December) of 2019/2020 as against Rs598 billion in the corresponding period of the last fiscal year, showing 15 percent growth, a statement said on Tuesday.

    So far as December 2019 is concerned, LTU Karachi collected Rs160 billion as compared with Rs144 billion in the same month of the last year.

    The rise in collection has been attributed to various tax facilitation and enforcement projects during the last six months by the LTU Karachi.

    The unit issued Rs17.8 billion as sales tax refunds during the period in order to effectively address liquidity problems of the manufacturing sector.

    In ongoing Broadening of Tax Base (BTB), the LTU Karachi retrieved data of unregistered commercial and industrial gas consumers and shared with the territorial regional tax offices for issuance of notices and registering the non-filers on income tax returns. This effort resulted in substantial increase in return filers.

    The statement said that pursuing proactive policy of Federal Board of Revenue (FBR), various steps had been taken for the purpose of early disposal of litigation cases pending with the courts. On this account, senior officers have been specifically deployed for assistance of the High Court of Sindh for early disposal of cases.

    The LTU Karachi said that strong enforcement as well as on site monitoring of production had been steadily reinforced and the exercise had brought growth in revenue especially in sugar and cement sectors.

    The unit further said that strong internal accountability mechanism had been strengthened at Chief Commissioner Secretariat, whereby activities of officers and staff were being personally monitored by the Chief Commissioner himself.

    All major taxpayers of LTU Karachi were actively engaged and appreciated for their substantial revenue contribution. In order to educate and enlighten the taxpayers regarding new tax measures and procedures, numerous taxpayer education and facilitation seminars were held during this period.

    These endeavors brought significant improvement in taxpayer’s voluntary compliance besides creating congenial atmosphere between taxpayers and tax collectors.

  • Higher inflation jacks FBR’s revenue collection up: SBP

    Higher inflation jacks FBR’s revenue collection up: SBP

    KARACHI: Higher inflation has jacked up the revenue collection for Federal Board of Revenue (FBR) besides other factors including increase in tax rates and reinstatement of tax on telecom services, State Bank of Pakistan (SBP) said on Monday.

    The SBP in its quarterly report on state of economy for July – September 2019/2020 said that the overall FBR taxes grew 15.2 percent in first quarter of 2019/2020, compared to the 8.8 percent rise noted in the same quarter of the last fiscal year.

    This higher growth can be attributed to: (i) an increase in sales tax rates; (ii) reinstatement of taxes on telecom services; (iii) an upward revision of tax rates on various salary slabs; (iv) increase in interest rates and higher tax on profit on debt;3 (v) upward revision in the federal excise duty (FED) rates; and (vi) the abolishment of the zero rating regime on five export-oriented sectors.

    “In addition to these measures, the impact of higher inflation also boosted revenue mobilization.”

    For 2019/2020, the SBP’s projections at the start of the year (July 2019) clocked in at an elevated range of 11-12 percent. Not only was this range higher than previously projected, but it was also in excess of the medium-term target of 5-7 percent.

    Despite this improvement, the FBR managed to achieve only 17.3 percent of the annual target of Rs 5,555.0 billion for 2019/2020. “This means that tax revenues would require a substantially higher growth in the remaining 9 months of the year to achieve the full year target.”

    Moreover, import-related taxes, representing nearly half of FBR taxes, would remain under stress due to the ongoing declining trend in imports. Dutiable imports, in particular, declined sharply in the first quarter of 2019/2020.

    Encouragingly, the fiscal authorities have introduced some initiatives to facilitate business and individual tax payers and to broaden the tax base.

    For instance, in order to provide hassle-free refunds to exporters, the FBR has introduced the Fully Automated Sales Tax e-Refund (FASTER) system for tackling refund claims within 72 hours.

    The FBR has also launched a mobile application, “FBR Tax Asaan,” to facilitate taxpayers in paying sales tax and claiming refunds.

    In addition, video tutorials are prepared and uploaded online to guide taxpayers in filing their income tax returns.

    These efforts to simplify and streamline the taxation mechanism have also contributed to the improvement in Pakistan’s ranking in the World Bank’s Ease of Doing Business: the digitization of tax collecting procedures was cited as one of the drivers of the improvement in the country’s ranking. In addition, the government has continued its drive to increase documentation in the economy.

    However, businesses are resisting some of these documentation measures, such as the CNIC condition on business-to-business (B2B) and business-to-consumer (B2C) transactions.

  • FBR collects Rs2,080 billion in first half at 16% growth

    FBR collects Rs2,080 billion in first half at 16% growth

    ISLAMABAD: Federal Board of Revenue (FBR) has collected Rs2,080 billion during first half (July – December) 2019/2020 as compared with Rs1,795 billion in the corresponding half of the last fiscal year, showing a growth of 16 percent.

    FBR chairman Syed Shabbar Zaidi in a tweet message said that the revenue body collected Rs2,080 billion up to December 31, 2019 posting 16 percent growth.

    On the basis of above data, the FBR collected Rs463 billion during December 2019 as compared with Rs411 billion in the same month of the last year, posting 12.65 percent growth.

    The FBR was required to collect Rs2,198 billion during first half of the current fiscal year as per revised performance criteria of International Monetary Fund (IMF).

    Considering the performance criteria the FBR’s revenue shortfall was at Rs118 billion during first half of the current fiscal year.

    According to Country Report Pakistan released by IMF on Monday the actual performance criteria for revenue collection was Rs2,367 billion during first half (July – December) of current fiscal year, which has been revised downward by Rs169 billion to Rs2,198 billion.

    As per IMF documents the FBR failed to achieve the first quarter (July – September) 2019/2020 target of Rs1,071 billion and its collection was at Rs964 billion.

    The actual revenue collection target for current fiscal year was Rs5,550 billion. However, the indicative target as per IMF documents has also been revised downward to Rs5,238 billion.

    The FBR has to raise revenue collection to Rs3,520 billion by March 2020 in order to ensure the desired target for current fiscal year.

    As per IMF documents: “Tax revenue is now expected to be 0.5 percent of GDP lower than originally expected: while domestic collection is envisaged to remain strong, growing by over 25 percent y-o-y over FY 2020, growth in trade-related tax revenues is expected to remain subdued as declining imports continue to weigh on collections—more than 40 percent of total tax revenue in Pakistan is collected at the import stage.”

    The FBR has been given revised Indicative Targets for end December 2019 including net tax collection to recognize the faster than expected external adjustment negatively impacting customs revenue, besides net accumulation of tax refund arrears to capture the authorities plan to reflect the end-June stock of tax refund arrears.

  • FBR collects Rs1,617 billion in five months; shortfall increases by Rs206 billion

    FBR collects Rs1,617 billion in five months; shortfall increases by Rs206 billion

    ISLAMABAD: The shortfall in revenue collection by Federal Board of Revenue (FBR) has soared to Rs206 billion during first five months (July – November) 2019/2020 making it more difficult for revenue authorities to achieve full year target of Rs5,550 billion.

    As per the revenue collection till Friday evening, the FBR provisionally collected Rs1617 billion during July – November 2019/2020 as compared with the five – month target of Rs1,829 billion.

    The FBR sources said that the provisional figures may increase to Rs1623 billion after finalization of collection.

    However, the FBR achieved 17 percent growth in first five months by collecting Rs1617 billion when compared with Rs1383 billion in the corresponding months of the last fiscal year.

    In the month of November 2019 the FBR collected Rs334 billion, which is 18 percent higher when compared with Rs282 billion in the same month of the last year.

    The FBR also missed the monthly target for the month of November 2019, which was Rs381 billion.

    It is worth mentioning here that the collection for fiscal year 2018/2019 had posted negative growth in 51 years.

  • Tax collection witnesses negative growth after 51 years

    Tax collection witnesses negative growth after 51 years

    ISLAMABAD: The revenue collection in 2018/2019 has witnessed negative growth after 51 years, according to year book released by Federal Board of Revenue (FBR). The historical revenue collection shows the tax collecting agency witnessed the negative growth in 1967/1968.

    Following is the historical revenue collection figures since 1948/1949:

    Rupees in million

    YearTotal 
    1948-49311+
    1949-50448+
    1950-51785+
    1951-52951+
    1952-53882–
    1953-54701–
    1954-55775+
    1955-56965+
    1956-57884–
    1957-58978+
    1958-591,281+
    1959-601,178–
    1960-611,400+
    1961-621,565+
    1962-631,760+
    1963-642,083+
    1964-652,498+
    1965-662,686+
    1966-673,299+
    1967-683,213–
    1968-693,902+
    1969-704,610+
    1970-714,984+
    1971-725,162+
    1972-736,508+
    1973-749,019+
    1974-7510,937+
    1975-7613,193+
    1976-7715,664+
    1977-7819,188+
    1978-7922,399+
    1979-8030,016+
    1980-8134,764+
    1981-8238,551+
    1982-8343,308+
    1983-8450,331+
    1984-8552,410+
    1985-8659,202+
    1986-8765,301+
    1987-8875,425+
    1988-8990,381+
    1989-90104,233+
    1990-91110,493+
    1991-92139,776+
    1992-93153,238+
    1993-94172,591+
    1994-95226,578+
    1995-96268,037+
    1996-97282,087+
    1997-98293,631+
    1998-99308,509+
    1999-00347,104+
    2000-01392,277+
    2001-02404,070+
    2002-03460,627+
    2003-04520,843+
    2004-05590,387+
    2005-06713,442+
    2006-07847,236+
    2007-081,008,091+
    2008-091,161,150+
    2009-101,327,382+
    2010-111,558,014+
    2011-121,882,693+
    2012-131,946,360+
    2013-142,254,532+
    2014-152,589,978+
    2015-163,115,054+
    2016-173,367,900+
    2017-183,843,755+
    2018-193,828,482–

    The negative growth in revenue collection for fiscal year 2018/2019 has been witnessed when Syed Muhammad Shabbar Zaidi is performing as chairman.

    The previous negative growth in revenue collection was recorded in 1967/1968 when Ghulam Ishaq Khan was Ex-Officio Chairperson of the then Central Board of Revenue (CBR) presently FBR.

    Record shows the tax collection also witnessed negative growth in 1952/1953, 1953/1954 and 1956/1957 when Mumtaz Hassan was ex-official chairperson of the CBR. He served at head of the tax collecting agency from February 25, 1952 to November 01, 1958.

    The tax collecting agency again witnessed negative collection growth in 1959-1960 when H A Majid was ex-officio chairperson of the CBR.

  • Sindh Revenue Board collects Rs23 billion in first quarter

    Sindh Revenue Board collects Rs23 billion in first quarter

    KARACHI: Sindh Revenue Board (SRB) has collected Rs23 billion during first quarter (July – September) of current fiscal year 2019/2020 as compared with Rs20.3 billion in the corresponding quarter of the last fiscal year, showing growth of 13.3 percent.

    The success in achieving the growth in revenue during the first quarter of 2019/2020 has been made possible because of the continued trust and cooperation of SRB taxpayers, the continuous support by the government of Sindh and the restless efforts made by SRB employees, said a statement issued by the SRB on Wednesday.

    The SRB said that during the month of September 2019 it collected Rs9 billion as compared to Rs7.5 billion during the same month of the last year, registering growth of 20 percent.

  • FBR collects Rs960 billion in first quarter: Shabbar Zaidi

    FBR collects Rs960 billion in first quarter: Shabbar Zaidi

    ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs960 billion in the first quarter of current fiscal year 2019/2020, which is about 90 percent of the target for the quarter, Syed Shabbar Zaidi, Chairman, FBR said on Monday.

    In a message on social media, he said that tax collection up to 90 percent of highly aggressive target for quarter ended September 30, 2019 has been achieved.

    “Collection is Rs 960 billion. Some more positive adjustment is expected. Furthermore this amount excludes refunds of past years of Rs15 billion,” the chairman said.

    The chairman said that collection from domestic sources had been increased by 25 percent. He said that the imports had been contracted by $3 billion during the period.

    He said that the contraction of import had impacted the revenue by Rs125 billion. The chairman said that if this amount added the revenue collection then the target would have been met.

  • MCC Port Qasim surpasses revenue collection target for August 2019

    MCC Port Qasim surpasses revenue collection target for August 2019

    KARACHI: Model Customs Collectorate (MCC) Port Muhammad Bin Qasim has surpassed revenue collection target for the month of August 2019.

    The collectorate collected Rs56 billion during August 2019, three percent higher than the target of Rs54.3 billion.

    The collection is also 17 percent higher when compared with Rs46.65 billion collected in August 2018, according to a press release issued by the collectorate on Sunday.

    The break-up of collection revealed that the collection of customs duty posted 15 percent growth to Rs18 billion during the month under review as compared with Rs15.2 billion in the same month of the last year.

    Similarly, in the same period the collection of sale tax increased to Rs32.47 billion as compared with Rs25.8 billion. Besides the collection of federal excise duty has increased to Rs393 million from Rs345 million.

    The collection of advance income tax at import stage increased to Rs5.6 billion in August 2019 as compared with Rs5.2 billion in the same month of the last year.

    Commenting on the revenue collection performance, Mumtaz Ali Khoso, collector of MCC Port Muhammd Bin Qasim said that the collection was impressive despite steep decline in imports.

    He lauded the leadership of Chairman of Federal Board of Revenue (FBR) Syed Muhammad Shabbar Zaidi, Member Customs-Operations Dr. Jawwad Uwais Agha and Chief Collector (Appraisement-South), Kharachi Ms. Suraiya Ahmed Butt.

    He also lauded the efforts of his team of officers and staff in achieving the revenue target and expressed the resolve to achieve the remaining revenue target for the current financial year.

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