Revenue collection surpasses upward revised target.

ISLAMABAD -- The Federal Board of Revenue (FBR) has collected a net revenue of Rs6,125 billion during the fiscal year 2021-22, which has exceeded the upward revised target of Rs6,100bn by Rs25bn.

This represents a massive growth of about 29.1 per cent over the collection of Rs4,744bn during the preceding fiscal last year (FY21), according to an official announcement released late on Thursday night.

The net revenue collection for the month of June this year stands at Rs763bn, an increase of 28.9pc from Rs580bn collected during the same month last year. The year-on-year growth of 29.1pc is unprecedented. These figures will further improve before the close of the day and after book adjustments are taken into account.

Likewise, the gross revenue collection increased from Rs4,996bn in FY21 to Rs6,460bn FY22, showing an increase of 29.3pc. One of the main drivers is the collection of taxes at import stage driven by the highest-ever increase in imports.

FBR collects Rs6,125bn in FY22, 29pc higher than Rs4,744bn a year ago

One of the key features of this outstanding performance by the FBR is reflected in a significant increase in direct taxes, which have registered a growth of 32pc over the last year. This is in line with the policy of the incumbent government to impose taxes on the income earned, thereby reducing indirect incidence of taxation.

Furthermore, the net collection under income tax during the year stands at Rs2,278bn against Rs1,731bn last year, whereas sales tax collection is Rs2,525bn this year against Rs1,983bn last year.

The net collection from customs duty stands at Rs1,000bn this year against Rs747bn last year, while the collection from federal excise duty is Rs322bn this year against Rs284bn last year. On the other hand, the amount of refunds of Rs335bn disbursed this year compared to Rs251bn of last year reflects an increase of 33.3pc. Similarly, refunds of Rs39bn made in June this year against Rs27bn in June 2021 increased by 43.8pc.

In the month of June, the refunds have been made to more than 5,800 taxpayers compared to 3,100 during the same month last year. This reflects FBR's resolve to fast-track refunds to prevent liquidity shortages in the industry. FBR's POS system documenting retail sector has integrated 10,611 POS machines of 4,563 Tier-1 Retailers...