FBR meets tax collection goals for July and posts a Rs458 billion profit.
The Federal Board of Revenue (FBR) announced the preliminary revenue collection data for July 2022, which came to Rs458 billion, according to The News.
The numbers show that the FBR’s net revenue over the period was Rs458 billion, which was 15 billion rupees more than its target of Rs443 billion.
According to the FBR, these receipts represent the highest July collections ever and an increase of about 10% over the Rs417 billion in receipts made during the same period last year.
After accounting for book adjustments, the numbers should become better.
The gross collection, on the other hand, increased from Rs438 billion in July of previous year to Rs486 billion, a rise of 11%. Similarly, the amount of refunds given out in July increased by 32% to Rs28 billion from Rs21 billion paid in the previous year.
Due to the paradigm shift, domestic taxes made up 55% of the total collection while import taxes kept their 40% share.
The trend has changed as a result. Previously, 52–53% of the total revenue was collected via taxes at the import stage. Similarly, the increase in domestic income tax is close to 31 percent, which the FBR described as a “dramatic move towards direct taxation.”
Similarly, the Advance Tax collected in July has increased significantly. Due to the implementation of a withholding provision that is applicable regardless of the holding term, there is also a 118 percent rise in the advance tax on the sale of properties under Section 236-C.
Similarly, a change in the tax rate has led to a 40 percent increase in Advance Tax under Section 147, particularly from financial companies.
In a similar vein, raising the FED rate on tobacco and cigarettes has paid off. Sales tax from the tobacco sector increased by a record-breaking 67 percent, while the FED from tobacco saw a record-high surge of over 47 percent, or Rs2.6 billion.
Additionally, the FED for international flight travel has climbed by more than 200 percent. Additionally, Pakistan Customs saw a modest 2.58 percent increase in revenue under the heading of customs duty during July 2022 compared to Rs65 billion collected during the same time last year.
However, it fell short of the Rs77 billion target set for July as a result of the government’s import compression policy, which aims to limit the outflow of US dollars. In addition, the FBR lost around Rs. 11 billion in sales tax due to the zero-rating of petroleum goods.
It is important to note that the number of income tax returns for tax year 2021 has increased by 13 percent to 3.4 million from 3.0 million for tax year 2020.The amount of tax deposited with returns during the Tax Year 2021 increased significantly by 46 percent, from Rs52 billion to Rs76 billion.
