November tax collection close to target at Rs346bn

ISLAMABAD: The Federal Board of Revenue (FBR) collection in November stood at Rs346 billion, missing the target of Rs348 billion. However, it posted over 3pc year-on-year growth from Rs335bn collected in the same month last year, provisional data showed on Monday.

However, the board collected Rs1.686 trillion during the first half (July-November) of this fiscal year exceeding the projected target of Rs1.669tr by Rs17bn or 1.01pc.

Special Assistant to Prime Minister on Revenue Dr Waqar Masood Khan told Dawn that the board was striving to meet monthly targets. However the economy was slowing down owing to partial lockdown of economic activities, he added.

Dr Masood said that revenue collection would be better in December owing to corporate income tax payments. However, he said things could get worse in case of re-imposition of lockdown to check the second wave of Covid-19 pandemic.

In November, income tax collection fell short of target by Rs21bn to Rs109bn as against Rs130bn target projected. However, it grew 4pc when compared with Rs105bn raised in the same month last year.

Despite introduction of several measures the realisation of income tax is much below the expectations.

Meanwhile, the sales tax collection jumped 14pc to Rs173bn in November from Rs152bn in the same month last year. However, the projected target of Rs142bn was exceeded by over 21pc. The growth came as a result of rise in POL prices, increase in imports and revival of economic activities in the month.

The federal excise duty (FED) collection dipped 18pc to Rs23bn as against Rs29bn last year. The FED target for November was set at Rs27bn, which was missed by Rs4bn.

Moreover, customs collection rose 4pc to Rs57bn as against Rs55bn in the corresponding month last year. The projected target was Rs49bn for the month under review.

The FBR is likely to book additional revenue after book adjustments and reconciliation in the next few days.

The payment of Rs81bn refunds in the first five months of this fiscal year — an increase of 97pc over last year’s payment of Rs41bn — suggested a sharp acceleration in economic activity leading to revival of industrial production.

The government, while preparing the budget for the ongoing fiscal year had assured the International Monetary Fund to raise Rs4.963tr in FY21 against Rs3.989tr collected in FY20 — a projected increase of 24.4pc.