ISLAMABAD: Prime Minister Imran Khan has appreciated the efforts of the Federal Bureau of Revenue (FBR) overcrossing tax collection of Rs4, 000 billion in a fiscal year for the first time ever in Pakistan’s history.
On a social media website Twitter, the prime minister apprised that the tax collections have reached Rs4,143 billion during a period of 11 months.
“From July-May our collections reached Rs.4143 [billion] & still counting – 18% higher than the same period last year,” he said.“It reflects broad-based economic revival spurred by government policies,” the prime minister added.
I commend efforts of FBR in crossing historic milestone of Rs 4,000 bn in any yr for first time ever. During Jul-May our collections reached Rs.4143 bn & still counting – 18% higher than same period last yr. This reflects broad-based economic revival spurred by govt policies.
— Imran Khan (@ImranKhanPTI) May 29, 2021
PM Imran in another Tweet earlier said that Pakistan’s gross domestic product (GDP) growth for this fiscal year was estimated at 3.94 percent.
The prime minister said, “National Accounts Committee has finalized GDP growth estimate and GDP growth is estimated at 3.94 percent.”
Imran Khan maintained that it reflects the success of his government’s economic policies while managing COVID- 19 pandemic. “Our V-shaped recovery is balanced between three major sectors – agriculture, industry and services,” the prime minister added.
National Accounts Committee has finalized GDP growth estimate & GDP growth is estimated at 3.94%.This reflects the success of our govt's economic policies while managing COVID 19 pandemic. Our V-shaped recovery is balanced between 3 major sectors: agriculture, industry & services
— Imran Khan (@ImranKhanPTI) May 21, 2021
According to provisional data collected by the tax authorities, the FBR maintained a steady momentum in the first ten months of the current fiscal year and collected Rs143 billion more than its revised target from July-April.
April has emerged as the second consecutive month when the FBR revenue collection surpassed the projected monthly target. The net collection for April was Rs384bn against a target of Rs350bn, an increase of 9.7 percent. This showed a growth of 57 percent compared to the collection of Rs244bn in April 2020
The FBR has collected net revenue of Rs3.78 trillion during the July 2020-April 2021 period, which has exceeded the target of Rs3.637 trillion by more than Rs143bn. This represents a growth of about 14 percent over the collection of Rs3.320 trillion during the same period last year.
The income tax collection during the July-April period stood at Rs1.374 trillion against the target of Rs1.404 trillion, showing a decline of around Rs30bn.
The sales tax collection jumped 23 percent to Rs1.764 trillion in the first 10 months of FY21 from Rs1.439 trillion in the same period last year. The growth is the result of rising in petroleum prices, an increase in imports and a revival of economic activities.
Federal excise duty (FED) collections were up 8pc to Rs223bn as against Rs208bn last year. The FED target for July-April was set at Rs241bn, which was missed by Rs18bn.
Customs collection posted impressive growth in April. It stood at Rs614bn during the July-April period this year as against Rs595bn over the last year, indicating a growth of 3.2pc. The target projected under Customs was Rs508bn for the period under review.
The government had assured the International Monetary Fund (IMF) of raising Rs4.96 trillion against Rs3.99 trillion collected in FY20, a projected increase of 24.4 percent. However, the IMF has revised downward this revenue target to Rs4.691 trillion for the current fiscal year.
To achieve the revised target, the FBR will have to collect Rs911bn in the May-June period of the current fiscal year. This target now seems achievable if there is no complete lockdown in the country and businesses remain in operation.
