ISLAMABAD: The main Pakistani fiscal mechanisms claimed on Saturday to have exceeded 4.143 billion rupees in the 11 months of the current fiscal year against 3.536tr rupees collected in the corresponding months of last year, indicating a resumption of economic activities in the country.
More income ranging from 15 billion rupees to 20 billion rupees will flow into the government treasury in the last two days (May 30-31) of the current month, which will further improve overall revenue collection during the July-May period of the current fiscal year.
Shortly after sharing the revenue collection data with Prime Minister Imran Khan, the Prime Minister took to Twitter to congratulate the Federal Board of Revenue (FBR) on reaching a “historic milestone” by collecting more than 4 trillion rupees in taxes for the first time in a fiscal year. year.
PM congratulates FBR for taking historic milestone
Mr Khan said revenue collection was 18% higher in July-May 2021 than in the previous year. Such a performance reflects the widespread economic recovery stimulated by the policies of his government, he said. The gross revenue collection of RBF reached 4.36 billion rupees between July and May FY21 compared to 3.66 billion rupees last year, reflecting an increase of 19 pc. The higher growth reflects the fact that the government also distributed refunds to taxpayers, he added.
This year, repayments of 216 billion rupees were disbursed in 11 months, compared to 124 billion rupees paid last year, an increase of 74pc. This clearly shows that the government has adopted a policy to release timely refunds from exporters and resolve their longstanding liquidity problem.
Dr Waqar Masood Khan, Special Assistant to the Prime Minister for Revenue and Finance, said Dawn that crossing the Rs4tr bar was a psychological barrier for RBF. He said RBF revenue collection has been around Rs3.8tr over the past three years.
Mr Khan said the growth in revenue collection would improve further by May 31. “We expect substantial income in the next two days,” he said, adding that people were normally paying taxes on the last dates in Pakistan.
The numbers improved despite the fact that revenue collection was affected during the week-long Eid vacation. Production picked up after Eid, resulting in increased revenue, the prime minister’s assistant said. He referred to the achievement of the revenue collection target for the current fiscal year.
The government, during the preparation of the budget for fiscal year 21, had assured the International Monetary Fund (IMF) to raise 4.96 tr Rs against 3.99 tr Rs collected in fiscal year 20, an expected increase of 24.4 pc. However, the IMF has revised downward the revenue target to Rs4.691tr for the current fiscal year. This revised target seems achievable, as the RBF, which was supposed to collect a total of Rs911 billion in May and June 2021, will now have to collect more than Rs550 billion in June alone.
For next year, the IMF has proposed a revenue-raising target for the RBF of Rs 5.963, although Finance Minister Shaukat Tarin has already hinted that the target will be lower than that proposed by the IMF.
Gross income tax collection during the July-May period amounted to Rs1.477tr against Rs1.34tr in the corresponding period last year, showing an increase of 10.22pc. However, the collection of income tax remained below target.
Meanwhile, sales tax collection jumped 28.26 percent to Rs 1,956 tr in the first 11 months of FY21, from Rs 1,525 tr during the same period last year. . The collection of sales tax exceeded the target. The growth is due to higher fuel prices, increased imports and a resumption of economic activities during the period under review.
Federal excise tax (FED) collections rose 11.55% to 251 billion rupees from 225 billion rupees last year.
Likewise, customs collection showing an 18.6% growth amounted to 676 billion rupees during the period July-May of this year compared to 570 billion rupees last year. Customs collection has shown impressive growth indicating the resumption of economic activities in the country and the control of smuggling especially in Balochistan.
Posted in Dawn on May 30, 2021