ISLAMABAD: The Federal Board of Revenue collected Rs1.395 trillion within the half-moon of the present fiscal year exceeding the target of Rs1.211tr by Rs186 billion, showed provisional data released by the FBR on Thursday.
Comparing with the revenue collection of Rs1.01 trillion in 2020, the revenue collection posted 38pc growth within the half-moon this year.
The revenue collection in September 2021 rose by 31.2 percent from last year’s Rs408bn. These figures would further improve before the close of the day and after book adjustments are taken under consideration.
The revenue collection is especially driven by 52pc contribution from the collection at import stage while only 48pc is from domestic taxes. Manufacturing is one of the leading contributors to revenue collection.
Finance Minister Shaukat Tarin will hold a gathering with the International fund within the middle of the present month for the discharge of the sixth tranche under the $6bn Extended Fund Facility.
The IMF officials were asking Islamabad to boost tax rates, especially for private income within the last budget to point out growth in revenue collection, which Mr. Tarin predicted are going to be achieved with no additional measures.
The gross collections including refunds and rebates payments increased from Rs1.059tr during July-September 2020 to Rs1.454tr within the current fiscal year, showing a rise of 37.3pc.
The number of refunds disbursed was Rs59bn during July-September 2021 compared to Rs49bn paid last year, reflecting a rise of 20.2pc. this is often reflective of FBR’s resolve to means refunds to stop liquidity shortages within the industry.
The government, while preparing the allow the present year, had assured the IMF of raising Rs5.829tr in FY22 against Rs4.721tr collected in FY21.
An official statement said that after collecting over Rs4.7tr and exceeding its assigned revenue targets set for the tax year 2020-21, the FBR has successfully maintained the momentum set in July 2021.
Its collection posted historic high growth within the half-moon of the present fiscal year. This performance shows that the FBR is well on its thanks to achieving the target of Rs5.829tr for the year despite the daunting challenges, compelling constraints posed by the coronavirus pandemic, and sporadic tax cuts announced by the govt as relief and price stabilization measures.
Meanwhile, the FBR has extended the date for filing of tax returns till Oct 15.
The FBR said the Sept 30 deadline had been extended by 15 days due to “serious technical problems” in its Iris portal for the e-filing of tax returns.
The FBR had declared multiple times that the deadline wouldn’t be extended. It had, however, directed its chief commissioners of Inland Revenue to “generously grant extensions” for filing tax returns for an additional 15 days to the people that faced “hardship of any nature”.
The FBR spokesperson said that 1.850 million tax returns had been received so far. With returns the FBR received Rs37bn tax against Rs28bn over the last year, showing a rise of 32pc.
The number of returns will increase further when the figures are finally counted, he said, adding that the FBR received Rs150, 000 returns on Sept 28 and 230,000 returns the subsequent day.
The FBR online systems didn’t sustain the traffic flow on Sept 30 which led to the choking of the Iris system for four to 5 hours.
Tax-wise breakup of the primary quarter
With the rising import bill including a rise in imports of smuggling-prone items on legal channels, customs collection stood at Rs228bn during the primary quarter as against Rs155bn last year, indicating a hefty growth of 47pc. The target projected under customs was Rs189bn for the amount under review, which was surpassed by Rs39bn.