The Federal Board of Revenue (FBR) collected net revenue of Rs. 4,382 billion during July-March of the current financial year 2021-22, exceeding the target of Rs. 4,134 billion by Rs. 247 billion. This represents a growth of about 29.1 percent over the collection of Rs. 3,394 billion during the same period, last year.
The Federal Board of Revenue (FBR) has released the provisional revenue collection figures for the months of July 2021 to March 2022 of the current financial year 2021-22.
The net collection for the month of March 2022 stood at Rs. 575 billion representing an increase of 20.5 percent over Rs. 477 billion collected in March 2021.
On the other hand, the gross collections increased from Rs. 3,577 billion from July 2020 to March 2021 to Rs. 4,611 billion in the current financial year July 2021 to March 2022, showing an increase of 28.9 percent. Likewise, the number of refunds disbursed during March 2022 was Rs. 31.9 billion while in March 2021 the refunds disbursed were Rs. 26.3 billion, registering an increase of 21.3 percent.
Similarly, refunds worth Rs. 229 billion have been disbursed from July 2021 to March 2022 compared to Rs. 183 billion paid last year, showing an increase of 25 percent. It is pertinent to mention that the ongoing unprecedented and constant growth trajectory in revenue collection has been achieved despite massive tax relief given by the government on various essential items to the common man.
For the first time ever in the country’s history, Sales Tax on all POL products has been reduced to zero which cost FBR Rs. 45 billion in March 2022. Likewise, the revenue impact of Sales Tax exemptions provided to fertilizers, pesticides, tractors, vehicles, and oil & ghee comes to Rs. 18 billion per month. Similarly, zero-rating on pharmaceutical products has cost FBR Rs. 10 billion in Sales Tax during the month of March 2022.
Thus, in aggregate, these relief measures have impacted revenue collection by approximately Rs. 73 billion during the month of March 2022. Furthermore, the political uncertainty and import compression also negatively impacted revenue collection during March.
