FBR generated net revenue of Rs. 458 billion in July 2022.
Infosette (News) ISLAMABAD: On Sunday, the Federal Board of Revenue (FBR) announced the preliminary revenue collection totals for the month of July 2022, which came to Rs458 billion.
The FBR collected net revenue of Rs. 458 billion during July 2022, which was Rs. 15 billion more than the target of Rs. 443 billion, according to preliminary data.
In comparison to the revenue collected during the same period last year, which totaled Rs417 billion, this represents an increase of about 10%.
After accounting for book adjustments, the numbers would further improve. These receipts represent the highest July collections ever. This exceptional revenue performance is a result of the FBR’s ongoing resolve to maintain the growth trajectory it established over the previous year.
The gross collection, on the other hand, increased from Rs438 billion in July of last year to Rs486 billion, a rise of 11%. Similar to the amount of refunds paid out in July, which increased by 32% to Rs28 billion from Rs21 billion paid in July of last year.
This demonstrates the FBR’s steadfast dedication to expediting refunds and avoiding industry liquidity shortages.
The Finance Act 2022, which the government introduced as a number of revenue and policy measures, is largely to blame for the significant revenue increase in July.
In contrast to the past, there is a clear emphasis on taxing the wealthy and powerful. Due to the paradigm shift, domestic taxes continued to account for 55% of total revenue while import taxes remained at 45%. The trend has changed as a result.
Previously, 52–53% of total revenue was collected from taxes at the import stage. Similarly, domestic income tax has increased by almost 31 percent, which is a notable shift in favour of direct taxation. Similarly, the Advance Tax collected in July has increased significantly.
Due to the implementation of a withholding provision that is applicable regardless of the holding period, there is also a 118 percent increase in the advance tax on the sale of properties under Section 236-C. Similar to this, a 40% increase in Advance Tax under Section 147, particularly from banking companies, is caused by a change in the tax rate.
Similar to this, the FED rate increase on tobacco and cigarettes has paid off. Sales tax from the tobacco sector increased by a record-breaking 67 percent, while the FED from tobacco saw a record-high growth of over 47 percent, or Rs2.6 billion.
Additionally, the FED on international air travel has increased by more than 200 percent. In addition to this, Pakistan Customs recorded a marginal 2.58 percent increase in revenue under the heading of customs duty during July 2022 compared to Rs65 billion collected during the same period last year.
However, it fell short of the Rs77 billion target set for July as a result of the government’s policy of import compression, which aims to limit the outflow of USD. Additionally, the FBR lost approximately Rs.11 billion in sales tax due to the zero rating of the POL products.
It is important to note that the number of income tax returns for the tax year 2021 has increased by 13% to 3.4 million from 3.0 million for the tax year 2020.
The amount of tax deposited with returns during the Tax Year 2021 increased significantly by 46 percent, from only Rs52 billion to Rs76 billion. Additionally, the FBR’s real-time POS reporting system has been integrated with 23,265 point-of-sale terminals, continuing its ongoing effort to integrate Tier-1 Retailers across the nation.