ISLAMABAD: Pakistan’s Federal Board of Revenue collected Rs 1.722 trillion in taxes during July and August, the first two months of the current fiscal year, exceeding its target of Rs 1.710 trillion by Rs 12 billion, according to FBR sources.
The result came despite slowing revenue growth and a decline in income tax receipts.
A strong performance in July offset a shortfall in August, when the FBR collected Rs 902 billion against a monthly target of Rs 930 billion, missing that goal by roughly Rs 28 billion.
Provisional figures show overall tax collection rose by Rs 55 billion, or 3.3%, compared with the same period last year. That growth rate falls well short of the 17.4% increase the FBR needs to meet its annual collection target of Rs 15.263 trillion, a goal set under Pakistan’s programme with the International Monetary Fund.
Sales tax was the leading driver of revenue growth, reaching Rs 719 billion, Rs 85 billion above target and Rs 86 billion, or 14%, higher than the same period last year. About Rs 496 billion, or 69% of total sales tax collection, was gathered at the import stage.
Income tax collection topped Rs 685 billion but fell Rs 74 billion short of the two-month target and was Rs 29 billion, or 4%, below the same period last year.
Federal excise duty brought in Rs 118 billion, roughly in line with target and Rs 3 billion higher than a year earlier. Customs duty totaled Rs 198 billion, slightly below target and largely unchanged from the previous year.
More than Rs 810 billion, or about 47% of total tax revenue for the two-month period, was collected at the import stage. FBR sources said the potential for tax evasion is comparatively limited at that stage of collection.
The FBR also issued Rs 155 billion in tax refunds during the period, about Rs 31 billion more than in the same period last year.
