Revenue collection surpasses upward revised target

The Federal Board of Revenue (FBR) has collected a net revenue of Rs6,125 billion during the fiscal year 2021-22, which has exceeded the upward revised target of Rs6,100bn by Rs25bn.

This represents a massive growth of about 29.1 per cent over the collection of Rs4,744bn during the preceding fiscal last year (FY21), according to an official announcement released late on Thursday night.

The net revenue collection for the month of June this year stands at Rs763bn, an increase of 28.9pc from Rs580bn collected during the same month last year. The year-on-year growth of 29.1pc is unprecedented. These figures will further improve before the close of the day and after book adjustments are taken into account.

Likewise, the gross revenue collection increased from Rs4,996bn in FY21 to Rs6,460bn FY22, showing an increase of 29.3pc. One of the main drivers is the collection of taxes at import stage driven by the highest-ever increase in imports.

One of the key features of this outstanding performance by the FBR is reflected in a significant increase in direct taxes, which have registered a growth of 32pc over the last year. This is in line with the policy of the incumbent government to impose taxes on the income earned, thereby reducing indirect incidence of taxation.

Furthermore, the net collection under income tax during the year stands at Rs2,278bn against Rs1,731bn last year, whereas sales tax collection is Rs2,525bn this year against Rs1,983bn last year.

The net collection from customs duty stands at Rs1,000bn this year against Rs747bn last year, while the collection from federal excise duty is Rs322bn this year against Rs284bn last year. On the other hand, the amount of refunds of Rs335bn disbursed this year compared to Rs251bn of last year reflects an increase of 33.3pc. Similarly, refunds of Rs39bn made in June this year against Rs27bn in June 2021 increased by 43.8pc.

In the month of June, the refunds have been made to more than 5,800 taxpayers compared to 3,100 during the same month last year. This reflects FBR’s resolve to fast-track refunds to prevent liquidity shortages in the industry. FBR’s POS system documenting retail sector has integrated 10,611 POS machines of 4,563 Tier-1 Retailers across the country. As many as 425 million tax invoices were generated by Tier-1 Retailers integrated with POS. Six POS computerised draws have been held in which prize money worth Rs318m was disbursed among 6,042 lucky winners.

Sales tax collection from the sugar sector during the current crushing season (December 2021-March 2022) under the Track and Trace System (TTS) amounted to Rs26.03b compared to Rs19.9bn during the corresponding period of previous crushing season, showing an increase of 31pc in four months alone.

Sugar production during the current crushing season was recorded at 7.85m tonnes compared to 5.67m tonnes of the previous crushing season, an increase of 39.7pc. Tobacco and fertiliser sectors will also be brought under the TTS during the first quarter of financial year 2022-23.

Pakistan Customs has collected Rs1 trillion in FY22 under the head of customs duty from Rs747bn in FY21 against the assigned target of Rs960bn and exceeded its target by Rs40bn, registering a sizable growth of 34pc.

During the month of June this year, an amount of Rs115bn has been collected under the head of customs duty against the target of Rs88bn, which is 30pc more than the assigned monthly target. Similarly, duty drawback issued by Pakistan Customs during the year is Rs33bn as against Rs24bn last year.

The Directorate General of Intelligence & Investiga­tion has forwarded 1,136 investigation reports and red alerts during July 2021-June 2022 to the field formations involving a revenue amounting to Rs321bn. Of these, 89 FIRs were lodged under the Anti-Money Laundering Act 2010, involving more than Rs66bn. The intelligence department seized 9,866 cartons containing 98,660,400 cigarette sticks this year. Likewise, the Directorate General of Intelligence and Investigation (Customs) realised revenues worth Rs2,942m against Rs2,368m last year, an increase of 24.26pc.

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