FBR collects Rs4,725 billion during outgoing financial year 2020-21

During the fiscal year 2020-21, which ended on June 30, 2021, the Federal Board of Revenue (FBR) exceeded its revised annual collection target of Rs4,691 billion, netting Rs4,725 billion in net provisional collections.

On the other hand, the FBR was unable to meet its initial tax collection target of Rs4,963 billion for 2020-21, which was reduced to Rs4,691 billion in accordance with the IMF’s agreement.

In June 2021, the FBR achieved a net collection of Rs555 billion, bringing the bureau’s total collection to Rs4,725 billion on June 30, 2021 night. The FBR collected Rs4,170 billion in the first 11 months of the current fiscal year (July-May), bringing the total collection to Rs4,725 billion after including the June 2021 collection. The FBR has yet to issue a press release, and the Board is expected to make a formal announcement on Thursday (today).

The FBR will achieve a net revenue collection increase in the range of 18.2 percent for the first time in the fiscal year 2020-21. The FBR’s revenue growth in the first two fiscal years under the PTI-led regime was flat in 2018-19 and 2019-20. The Covid-19 epidemic had a negative impact on the FBR’s expansion efforts in the second year of 2019-20.

In another unexpected action, the FBR continued to pay refunds under the technical supplementary grant (TSG), and the Board paid Rs40 billion in refunds through the TSG during the previous financial year. With the FBR’s income performance in the previous fiscal year, there are now hopes that the government would be able to meet its budget deficit target of 7% of GDP for the current fiscal year, which ends on June 30, 2021. Within three weeks, the financial accounts would be completed.

“Yes, the FBR has surpassed its revised tax collection target and so far, the collection stands at Rs4,725 billion on June 30, 2021” a senior FBR official confirmed

According to the official, the FBR’s gross collection was Rs4,976 billion to June 30, 2021, with the Board paying refunds of Rs251 billion, resulting in a net collection of Rs4,725 billion. During the past financial year 2019-20, the FBR’s gross collection was Rs4,133 billion, while the Board issued Rs136 billion in refunds during that time. When compared to the same period of the previous fiscal year 2019-20, the FBR’s yearly revenue collection rise was 18.2 percent in 2020-21.

According to official sources, the FBR paid Rs251 billion in cash refunds, adjusted Rs73 billion against due refunds, and offered Rs40 billion through TSG in 2020-21, totaling Rs364 billion in refund payments.  In the last financial year, the FBR had paid cash refunds amount of Rs136 billion, adjusted Rs40 billion, and provided Rs100 billion through TSG, so the payment of the total refund stood at Rs275 billion. The FBR made more refunds’ amount in the outgoing fiscal year 2020-21 in the range of 32 percent compared to the last fiscal year.

During the months of July to May, the FBR collected Rs4,170 billion, exceeding the target of Rs3,994 billion by Rs176 billion. This is up 18% from the Rs3,549 billion collected in the same time the previous year.

May’s net collection was Rs386 billion, compared to a target of Rs214 billion, showing a 69 percent increase over the Rs229 billion collected in May 2020 and 168 percent of the objective. The 69 percent increase year over year is remarkable, especially given that it came on the heels of a 57 percent increase in April.

Also Read

FBR withdraws condition of bank guarantee, pay order on temporary import

KARACHI: The tax authorities have withdrawn the condition of bank guarantee and...