The Federal Board of Revenue (FBR) has provisionally collected net revenue of Rs. 6,125 billion during the current fiscal year (July 21 – June 22), exceeding the upward revised target of Rs. 6,100 billion by Rs. 25 billion.
This represents a massive growth of about 29.1 percent over the collection of Rs. 4,744 billion during the same period, last year. Likewise, the gross revenue collection increased from Rs. 4,996 billion during last year to Rs. 6,460 billion this year, showing an increase of 29.3 percent.
One of the key features of this outstanding performance by FBR is reflected in the significant increase in direct taxes that has registered a growth of 32 percent over the last year. This is in line with the policy of the incumbent government to enforce taxation on income earned thereby reducing the indirect incidence of taxation.
Furthermore, the net collection from income tax during the year is Rs. 2,278 billion against Rs. 1,731 billion last year whereas the sales tax of Rs. 2,525 billion has been collected this year against Rs. 1,983 billion last year. The net collection from customs duty is Rs. 1,000 billion this year against Rs. 747 billion last year while the collection from federal excise duty is Rs. 322 billion this year against Rs. 284 billion last year. Moreover, the duty drawbacks issued by Pakistan Customs during the year are Rs. 33 billion as against Rs. 24 billion last year.
The net collection of Rs. 1,741 billion during the fourth quarter of the current financial year against Rs. 1,351 billion collected in the same quarter of last year, represents an increase of 31.7 percent despite many challenges.
The net collection for the month of June 2022 is Rs. 763 billion representing an increase of 28.9 percent over Rs. 580 billion collected in June 2021. The year-on-year (YoY) growth of 29.1 percent is unprecedented, particularly, as it is realized on the heel of 31.7 percent growth in the fourth quarter. These figures would further improve before the close of the day and after book adjustments have been taken into account.
On the other hand, refunds of Rs. 335 billion disbursed during this year compared to Rs. 251 billion paid in last year, reflecting an increase of 33.3 percent. Likewise, refunds of Rs. 105 billion issued during the fourth quarter this year against Rs. 68 billion issued in the same quarter of last year, increased by 55.2 percent.
Similarly, refunds of Rs. 39 Billion issued during June 2022 against Rs. 27 Billion in June 2021 increased by 43.8 percent. In the month of June, the refunds have been issued to more than 5,800 taxpayers as compared to 3,100 in June last year. This is reflective of FBR’s resolve to fast-track refunds to prevent liquidity shortages in the industry. The robust revenue performance is even more significant due to effective enforcement by field formations.
Point of Sale System
It is pertinent to mention that FBR’s point of sale (POS) system to document the retail sector has integrated a total of 10,611 POS machines of 4,563 Tier-1 Retailers across the country. A total of 425 million tax invoices were generated by Tier-1 Retailers integrated with POS.
Six POS computerized draws have been held in which prize money of Rs. 318 million was disbursed among 6,042 lucky winners. The number of FBR invoices is increasing as a result of effective monitoring by FBR despite the resource crunch.
Track & Trace System
The capture Large Scale Manufacturing (LSM) across the country through Track & Trace System (TTS) has already started paying dividends. Sales tax collection from the sugar sector during the current crushing season (December 2021 – March 2022) under Track and Trace System stood at Rs. 26.03 billion as compared to the corresponding period of the previous crushing season which stood at Rs. 19.9 billion, showing an increase of 31 percent in four months only.
Similarly, sugar production during the current crushing season was recorded at 7.85 million tons as compared to 5.67 million tons in the previous crushing season depicting a 39.7 percent increase over the last year. The tobacco and fertilizer sectors will also be brought under the system during the first quarter of the financial year 2022-23.