ISLAMABAD   -   The Federal Board of Revenue (FBR) has surpassed the tax collection target for August by Rs6 billion despite floods, zero rating on POL products, and im­port compression.

The FBR has released the provisional revenue collection figures for the month of August, 2022. According to the provi­sional information, FBR has col­lected net revenue of Rs. 489 bil­lion during August 2022, which has exceeded the target of Rs. 483 billion against Rs. 448 bil­lion collected during the same period, last year. These figures would further improve after the book adjustments have been taken into account. These collec­tions are the highest ever in the month of August. This outstand­ing revenue performance is a re­flection of FBR’s resolve to build on its growth trajectory despite floods, zero rating on POL prod­ucts, and import compression.

On the other hand, the gross collection increased from Rs. 462 billion during August last year to Rs. 526 billion, showing an increase of 14%. Likewise, the amount of refunds dis­bursed during August was Rs. 37 billion compared to Rs. 14.3 billion paid last year, showing an increase of 161%. This is reflective of FBR’s strong com­mitment to fast-track refunds and thereby prevent liquidity shortages in the industry.

The significant revenue in­crease in August is largely the outcome of various policy and revenue measures introduced by the government in Finance Act 2022. Unlike in the past, there is a visible focus on taxing the rich and affluent. Owing to this paradigm shift, the growth in domestic Income Tax is al­most 38% which is a remarkable shift towards direct taxation. Likewise, there is a significant upsurge in Advance Tax collect­ed during August, which is 72% increase from the corresponding period of the previous year.

Provisional collection of In­come Tax, Sales Tax, Federal Excise and Customs Duty were respectively Rs.165 billion, Rs. 218 billion, Rs.24 billion and Rs. 82 billion as against Rs.124 billion, Rs. 223 billion, Rs. 23 billion and Rs.77 billion during the corresponding period of the previous year. Total taxes collected during July and Au­gust stands at Rs.948 billion against the target of Rs.926 billion. For the new fiscal year, the government has set the tax collection target at Rs7.470 trillion on the IMF’s demand, which will require about 22% growth in collection. The high­er inflation rate is helping the FBR in achieving the target