The Federal Board of Revenue (FBR) has managed to collect a total of Rs 850 billion, twice the projected amount of growth for the months of July and August. The projected target had been Rs 690 billion for the two-month period of this fiscal year, hence the achieved target exceeded the amount by Rs 160 billion, stated FBR Chairman Dr. Mohammad Ashfaq during his initial press conference.
As compared to last year, 2021’s values exhibit a growth rate of over 50% in revenue. Prime Minister Imran Khan also tweeted in regards to this achievement and seemed to be confident that the projected target of Rs 5.829 trillion would be easily achieved.
This will not only benefit the country on a national level but on an international one as well, as it is a step towards fortifying the government’s case in the eyes of the International Monetary Fund (IMF). The IMF’s concern with the country’s tax collection process was that there was an immense gap of approximately Rs 300-350 billion and the required Rs 5.829 trillion target, and how the steps being taken to reach the required mark would not prove to be sufficient enough. However, Finance Minister Shaukat Tarin, believed that the FBR had managed to achieve this target with the currently utilized measures, requiring no further changes, and so he had requested the IMF for more time in order to substantiate his claims.
FBR with the current growth had managed to achieve in these two months was approximately double the pace needed by the organization to reach the required target of Rs 5.829 trillion.
In regards to the total revenue collection, Rs 458 billion, approximately 55% of the total revenues, were gathered at the import stage becoming an added reason for the rising prices of many of the basic commodities. As for indirect taxes, a total of Rs 458 billion were collected, summing up to 70% which were in the form of general sales tax, customs duty, and federal excise duty. In terms of income tax, the FBR had managed to gather Rs 46 billion more than the set target, which resulted in a total of Rs254 billion.
While discussing the parliament purposely withholding taxes at the import stage, Dr. Ashfaq stated it had its own advantages. He said that the imports stage collection was on the increase due to the upsurge in the number of imports of food items, machinery, and raw materials, claiming it was evidence of “vibrancy” in the economy.
According to, Dr. Ashfaq, there were many reasons behind the FBR’s accomplishment.
- The steady political situation of the country.
- Implementation of FBR laws on everyone irrespective of their power or position.
- Crackdowns on unethical and corrupt practices.
- Effective supervision.
- Restructuring of tax offices across the country.
Dr. Ashfaq’s main aim as the FBR chairman remains to collect taxes and he stated he would not focus on the nature of taxation or its source of the collection as long as his objective was being achieved.
