Despite Massive Tax Relief, FBR Registers 29% Growth

Web Desk — From July 2021 to March 2022, the Federal Board of Revenue (FBR) has collected net revenue of Rs4,382 billion, exceeding its target of Rs 247 billion. It is a growth of about 29.1% over the collection of Rs3,394 billion during the same period last year.

According to FBR’s provisional revenue collection figures for July 2021 to March 2022 of the current financial year 2021-22, the net collection for March 2022 was Rs 575 billion, an increase of 20.5% over Rs 477 billion collected in March 2021.

The gross collections increased from Rs 3,577 billion in July 2020 to March 2021 to Rs 4,611 billion in the current Financial Year July 2021 to March 2022, showing a 28.9% increase. Similarly, the number of refunds disbursed in March 2022 was Rs.31.9 billion, while in March 2021 it was Rs.26.3 billion, showing an increase of 21.3%.

From July 2021 to March 2022, refunds worth Rs 229 billion were disbursed, compared to Rs 183 billion paid last year, an increase of 25.0%.

Despite massive tax relief, the government has given to the common man on various essential items, the ongoing unmatched and constant growth trajectory in revenue collection continues. 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 March 2022.

The revenue impact of sales tax exemptions provided on fertilizers, pesticides, tractors, vehicles, and oil and ghee is Rs. 18 billion per month. Similarly, zero-rating on pharmaceutical products has cost FBR Rs. 10 billion in sales tax during March 2022. As a result, these relief measures have reduced revenue collection by approximately Rs. 73 Billion during the month of March 2022.

It is worth noting that both at the policy and operational levels FBR has introduced a number of innovative interventions with a view to maximizing revenue potential through digitization, transparency, and taxpayers’ facilitation.

Ease of doing business besides healthy and steady growth in revenue collection was the ultimate outcome of the new policy promulgated at FBR.

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 the business community.