The Federal Board of Revenue (FBR) has released the provisional revenue collection figures for the month of August 2022.
According to the provisional information, FBR has collected net revenue of Rs. 489 billion during August 2022, the highest ever tax collection for August as compared to Rs. 448 billion collected during the same period last year. The tax collection for August was Rs. 6 billion higher than the target of Rs. 483 billion.
These figures would further improve after the book adjustments have been taken into account. This revenue performance is a reflection of FBR’s resolve to build on its growth trajectory despite floods, zero ratings on POL products, and import compression.
On the other hand, the gross collection increased from Rs. 462 billion in August last year to Rs. 526 billion in the same month this year, showing an increase of 14 percent.
Likewise, the number of refunds disbursed during August was Rs. 37 billion compared to Rs. 14.3 billion paid last year, showing an increase of 161 percent. This reflects FBR’s strong commitment to fast-track refunds and thereby prevents liquidity shortages in the industry.
The significant revenue increase in August is largely the outcome of various policy and revenue measures introduced by the government in the Finance Act 2022. Unlike in the past, there is a visible focus on taxing the rich and affluent. Owing to this paradigm shift, the growth in domestic Income Tax is almost 38 percent which is a remarkable shift towards direct taxation.
Likewise, there is a significant upsurge in Advance Tax collected during August, which shows an increase of 72 percent compared to the corresponding period of the previous year.
Provisional collection of Income Tax, Sales Tax, Federal Excise and Customs Duty were Rs. 165 billion, Rs. 218 billion, Rs. 24 billion and Rs. 82 billion respectively compared to Rs. 124 billion, Rs. 223 billion, Rs. 23 billion and Rs. 77 billion during the corresponding period of the previous year.
Total taxes collected during July and August stands at Rs.948 billion against the target of Rs.926 billion.