ISLAMABAD - In a major development, the Federal Board of Revenue (FBR) has achieved the tax collection target of first eight months (July to February) of the current fiscal year.
The FBR on Friday claimed to achieve Rs2900 billion in July to February period of the year 2020-21 as against the target of Rs2898 billion. The FBR has achieved the target two days before the completion of the month. The FBR said that tax collection is till February 26, which might further increase when the final figures of tax collection come.
The government had set annual tax collection target at Rs4963 billion for the ongoing financial year. So far, the government is on track in achieving the tax collection after meeting eight months target.
Earlier, the FBR has provisionally collected Rs 2572 billion during Jul-Jan, FY2021 against Rs2426 billion in the same period last year, posting a growth of 6.0 percent. The net collection has exceeded the target by Rs 22 billion. Domestic tax collection increased by 6.2 percent to Rs2173 billion in the first seven months of FY2021 against Rs 2046 billion in the comparable period of last year. Within domestic, direct tax grew by 5.0 percent, sales 7.8 percent and FED increased by 2.8 percent during Jul-Jan, FY2021 over the same period of last year. For the month of January, the net tax collection recorded a growth of 12.5 percent to accumulate Rs 366 billion, while it exceeded the target by Rs 26 billion in the month of Jan 2021
The ministry of finance in its report noted that despite significant challenges, the revenues side performed better on the back of improved tax collection both at the federal and provincial level. The performance is an indication of growing economic activity even in the wake of challenges posed by second wave of the pandemic. This implies that, as economic activity accelerates further, there would be more increase in revenues.