The Federal Board of Revenue (FBR) has exceeded the assigned revenue collection target of Rs. 527 billion during the month of February 2023, according to the updated data released by the FBR on Wednesday.
According to the details released by the FBR, the tax machinery has once again demonstrated great revenue collection performance during February 2023, despite the difficult economic situation.
According to provisional figures, FBR collected Rs. 527.3 billion against the target of Rs. 527 billion during the month of February 2023, exhibiting a growth of 16.3 percent compared to the same month last year.
Cumulatively, FBR has collected Rs. 4,493 billion in the first eight months of the current financial year against Rs. 3,820 billion collected in the corresponding period of last year depicting a year-over-year growth of 18 percent. FBR continues to show impressive performance during the third quarter of the current financial year which displays its unwavering commitment towards achieving the revised upward annual budgetary target of Rs. 7,641 billion despite economic challenges.
As per the provisional data, direct tax collection grew at a robust pace of 47 percent during the first eight months of the current financial year which is reflective of the Government’s policy of making taxation progressive and equitable by shifting the tax burden towards society’s wealthy and affluent segments.
This consistent growth in direct taxes, particularly those from domestic sources, is, in large part, due to administrative and enforcement measures of the FBR. The contribution of domestic taxes has increased from 49.4 percent last year to 58.7 percent during the current year, pointing towards the success of policies aimed at reducing reliance on import duties and taxes.
Furthermore, it is also significant that the collection from Customs Duty has shown an increase of 2% during the month of February 2023 compared to the same month last year. FBR has also stayed on top of addressing exporters’ liquidity needs by issuing Rs. 235 billion in refunds during the first eight months of the current financial year as against Rs.198 billion during the corresponding period of last year-a year-over-year increase of 19 percent.
FBR sincerely appreciates all those taxpayers who diligently fulfilled their national duty of paying due taxes. This would go a long way in achieving the budgetary target and also lauds the endeavors of all field formations and their officers for their untiring efforts and commitment to optimizing revenue collection in challenging economic situations.
This growth in tax revenues, especially direct taxes, underscores the resolve of the Government and FBR to make Pakistan a thriving, resilient, and self-reliant nation with the will and capacity to withstand the current economic challenges, FBR added.