MM News

ISLAMABAD: Prime Minister Imran Khan has commended Federal Board of Revenue (FBR) for achieving historic level of tax revenues of Rs 4732 billion rupees during fiscal year 2020-21.

In a tweet, the prime minister said this is eighteen percent higher than last year and exceeded the target of Rs4691 billion. He said this performance is testimony to the strong economic revival spurred by our government’s policies.

I commend efforts of FBR in achieving historic level of tax revenues of Rs.4732 bn in 2020-21 – exceeding target of Rs 4691 bn &18% higher than last year. This performance is testimony to the strong economic revival spurred by our government’s policies.

— Imran Khan (@ImranKhanPTI) July 2, 2021

The FBR has exceeded the revised target of Rs4.691tr by Rs30 billion, showed provisional data released by the Federal Board of Revenue (FBR). For 2021-22, the government has projected revenue collection target for the FBR at Rs5.829tr as against Rs4.691tr revised target for FY21.

Among the federal taxes, the income tax collection fell short of target by Rs137bn, followed by Rs25bn in Federal Excise Duty (FED) in the outgoing fiscal year. Sales Tax collection surpassed the annual target by Rs317bn owing to nearly double-digit inflation and higher petroleum prices.

The budgetary revenue collection target was projected at Rs4.963tr for 2020-21, which was revised down to Rs4.697tr due to lockdown closures. The revenue shortfall has recorded at Rs242bn when compared with the budgetary revenue target.

On a monthly basis, the revenue collection in June fell short of target by Rs140bn to Rs557bn this year against the target of Rs697bn over the corresponding month of last year. From March to April, the revenue collection surpassed the projected monthly target.

The gross revenue collection reached Rs4.971tr as against Rs4.135tr over the corresponding months last year, showing an increase of 20%. The gross revenue collection crossed the budgetary revenue target for the outgoing fiscal year.

The income tax collection during the outgoing fiscal year stood at Rs1.734tr as against the target of Rs1.871tr, showing a shortfall of about Rs137bn. The collection showed growth of 12pc when compared with Rs1.550tr uring the same period last year.

Sales tax collection jumped 29pc to Rs2.189tr in the FY21 from Rs1.692tr in the same period last year. The target was projected at Rs1.872tr and it was surpassed by Rs317bn.

The FED collections increased 10% to Rs284bn as against Rs258bn last year. The FED target for July-June FY21 was set at Rs309bn, which was missed by Rs25bn.

Customs collection stood at Rs765bn during the outgoing fiscal year as against Rs636bn over the last year, indicating a growth of 20pc. The target projected under customs was Rs640bn for the period under review.

The maximum growth in customs revenue collection was noted owing to increase in imports of smuggled-prone items and a revival of industrial growth.