FBR collection jumps 32pc to Rs2.92tr in 6MFY22

ISLAMABAD: The Federal Board of Revenue (FBR) collected Rs2.920 trillion in the first half of the current fiscal year (6MFY22), exceeding the target of Rs2.633tr by Rs287 billion, provisional data compiled by the tax body showed on Friday.

The 6MFY22 collection witnessed a growth of 32.5pc when compared with Rs2.204tr the FBR collected in the same period of FY21.

Month-on-month, the revenue collection in December rose by 18pc to Rs600bn. However, it missed the Rs617bn target set for the month. But an official announcement of the FBR said that these figures would further improve after book adjustments have been taken into account.

Finance Minister Shaukat Tarin said in a recent press conference the revenue target would be Rs6.1tr. This target was revised upwards on the plea to keep the budget deficit at a committed place. The government, while preparing the budget for the current year, had assured the IMF of raising Rs5.829tr in FY22, against Rs4.721tr collected in FY21.

The rising inflation, coupled with the withdrawal of Rs343bn exemptions and several other measures like an increase in the rates of withholding tax on vehicles, mobile phones and tax on entertainment, will add revenue to the existing projections. The gross collection, including refunds and rebate payments, increased from Rs2.315tr during July-December 2020 to Rs3.068tr in 6MFY22, an increase of 32.5pc.

The disbursement of refunds jumped 33pc to Rs148bn during the July-December period from Rs111bn in the corresponding period last year. This is reflective of FBR’s resolve to fast-track refunds to prevent liquidity shortages in the industry.

With the rising imports, including smuggling-prone items on legal channels, the customs duty collection posted 42.5pc growth to Rs476bn in 6MFY22, as against Rs334bn in 6MFY21. The target of Rs415bn was surpassed by Rs61bn.

The income tax collection stood at Rs1.013tr during 6MFY22 as against the target of Rs1.015tr, showing a marginal decline of Rs2bn. The collection showed a growth of 22.6pc when compared with Rs826bn collected during the same period during the last fiscal year.

Meanwhile, the sales tax collection jumped 38.7pc to Rs1.272tr from Rs917bn in the same period last year. The target was projected at Rs1.053tr and it was surpassed by Rs219bn. The growth came as a result of the highest-ever rise in fuel prices, increase in imports and revival of economic activities during the period under review.

The FED collections were up 14.96pc to Rs146bn, as against Rs127bn last year. The target of Rs151bn was missed by Rs5bn.