FBR Registers Historic Tax Collection Growth of 38.3% in Q1 FY22

The Federal Board of Revenue (FBR) has amassed the revenue collection target of Rs. 1211 billion set for the first quarter (July-September) 2021-22.

The FBR’s data revealed that the FBR has collected Rs. 1391 billion during the first quarter (July-September) 2021-22 against the assigned target of Rs. 1211 billion for this period, reflecting an increase of Rs. 180 billion. The assigned target has been surpassed by a big margin of Rs. 186 billion.

The tax machinery has provisionally collected Rs. 1,391 billion during the first three months of 2021-22 against Rs. 1,011 billion during the same period of last fiscal year, reflecting a growth of 38 percent.

Against the monthly target of Rs. 520 billion for September 2021, the FBR has collected Rs. 530 billion, showing an increase of Rs. 10 billion.

The FBR has collected Rs. 530 billion during September 2021 against Rs. 408 billion in September 2020, reflecting an increase of 30 percent. The FBR has so far received 1.8 million income tax returns till September 30 (evening), the sources added.

The net collection for the month of September, 2021 realized Rs. 535 billion representing an increase of 31.2 % over Rs. 408 billion collected in September 2020. These figures would further improve before the close of the day and after book adjustments have been taken in to account.

On the other hand, the gross collections increased from Rs. 1,059 billion during July-September, 2020 to Rs. 1,454 billion in current Financial Year, showing an increase of 37.3 %. The amount of refunds disbursed was Rs. 59 billion during July-September, 2021 compared to Rs. 49 billion paid last year, reflecting an increase of 20.2 %. This is reflective of FBR’s resolve to fast-track refunds to prevent liquidity shortages in the industry.

It is pertinent to mention that after collecting over 4.7 Trillion and exceeding its assigned revenue targets set for tax year 2020-21, FBR has successfully maintained the momentum set in July, 2021. Its tax collection posted historic high growth in first quarter of current fiscal year. During first quarter, FBR has far surpassed its revenue target by Rs 186 billion. This spectacular performance at the outset of the year shows that FBR is well on its way to achieving the assigned target of Rs. 5,829 Billion for the year despite the daunting challenges, compelling constraints posed by the corona pandemic, and sporadic tax cuts announced by the government as relief and price stabilization measures.