Islamabad August 31 2022: 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, which has exceeded the target of Rs. 483 billion against Rs. 448 billion collected during the same period, last year. These figures would further improve after the book adjustments have been taken into account. These collections are the highest ever in the month of August. This outstanding revenue performance is a reflection of FBR’s resolve to build on its growth trajectory despite floods, zero rating on POL products, and import compression.
On the other hand, the gross collection increased from Rs. 462 billion during August last year to Rs. 526 billion, showing an increase of 14%. Likewise, the amount of refunds disbursed during August was Rs. 37 billion compared to Rs. 14.3 billion paid last year, showing an increase of 161%. This is reflective of FBR’s strong commitment to fast-track refunds and thereby prevent 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 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% which is a remarkable shift towards direct taxation. Likewise, there is a significant upsurge in Advance Tax collected during August, which is 72% increase from the corresponding period of the previous year.
Provisional collection of Income Tax, Sales Tax, Federal Excise and Customs Duty were respectively Rs.165 billion, Rs. 218 billion, Rs.24 billion and Rs. 82 billion as against 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.
