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Sales Tax Was The Top Revenue Source of Overall Tax Collection in FY22

The sales tax remained the top revenue generator with 41.2 percent share in total tax collection in 2021-22, followed by direct taxes with 37.2 percent, customs duty with 16.4 percent and the Federal Excise Duty (FED) 5.2 percent share in overall revenue collection.

A report of the FBR on revenue performance for 2021-22 revealed that during FY2021-22 the FBR collection recorded healthy growth. In the second half of 2021-22 despite the challenges like local and international geopolitical situation, inflation, disruption of the supply chain, the decline in import quantities, and zero rating of Petroleum products, the growth was 28 percent.

Moreover, performance in the final quarter of 2021-22 has been particularly excellent.

Monthly growth trends in terms of collection during FY 2021-22 Vs FY 2020-21 (Table 4) shows that, from December onwards, the required collection growth rate declined (except during February) but from April onwards a rise may be seen.

Growth in the month of April 2022 was 25.3 percent, in May 28 percent and, in June 37.5 percent. The higher growth trend during the last three months is attributable to the efforts of the field formations in terms of higher collection of current as well as arrear demand, FBR analysis added.

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ProPK Staff