Federal Board of Revenue (FBR) has released the provisional revenue collection figures for the months July 2021- May 2022 of current Financial Year 2021-22. According to the provisional information, FBR has collected net revenue of Rs. 5,349 billion during July 2021-May 2022 of current Financial Year 2021-22.
The provisional figures reported will further improve after closure of payment receipts and reconciliation with State Bank of Pakistan. This represents a growth of about 28.4% over the collection of Rs. 4,164 billion during the same period, last year.
The net collection for the month of May 2022 realized Rs. 490 billion represents an increase of 26.8 % over Rs. 387 billion collected in May 2021. On the other hand, the gross collections increased from Rs. 4,389 billion during July, 2020-May, 2021 to Rs 5,644 billion in current Financial Year July 2021- May 2022, showing an increase of 28.6%.
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Likewise, the amount of refunds disbursed during May 2022 was Rs.30.4 Billion while in May 2021 the refunds disbursed were Rs.21.1 Billion, registering an increase of 44.3%. Similarly, refunds worth Rs 295.5 billion have been disbursed during July 2021- May 2022 compared to Rs 224.2 billion paid last year, showing an increase of 31.8%.
Needless to add 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 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 May 2022. It is also worth sharing that FBR has introduced a number of innovative interventions both at policy and operational levels with a view to maximizing revenue potential through digitization, transparency, and taxpayers’ facilitation.
This has not only resulted in ensuring transparency, taxpayers’ facilitation, and the ease of doing business but also translated into healthy and steady growth in revenue collection.
Likewise, the incumbent top leadership of FBR has launched a new culture of clean taxation with a clear focus on collecting only the fair tax and not holding up refunds that are due to be paid.
This has not only fast-tracked the process of bridging the trust deficit between FBR and Taxpayers but also ensured the much-needed cash liquidity for business community. That’s precisely why FBR continues to surpass its assigned revenue targets despite challenges and price stabilization measures adopted by the government.