Revenue collection up 3.9pc in 2019-20.

Byline: Mubarak Zeb Khan

ISLAMABAD -- The revenue collection saw a paltry growth of 3.9 per cent year-on-year in 2019-20 mainly due to the lockdown and a sharp deceleration in economic activity since the coronavirus outbreak.

From March 18, the government imposed lockdown across the country which was relaxed in the second half of May. The steepest fall in collection was seen in the months of April, dipping by 16pc and May 30.8pc from last year.

However in June, the quantum of decline eased to 12pc as the government further relaxed the lockdown and revenue collection reached Rs415bn during the month, compared to Rs472bn in the same period last year.

Last year's collection in June also includes the one-time receipt of Rs50bn from the tax amnesty scheme. The revised revenue target for outgoing June was Rs398bn.

Provisional data show that the Federal Board of Revenue has collected Rs3.967 trillion between June and July, as against Rs3.826tr received in FY19, showing an increase of 3.9pc.

The revised annual revenue collection target for the FBR was Rs3.908 trillion.

The FBR expects to receive a few more billion rupees when the revenue collection figures are finalised in the next few weeks owing to book adjustments.

The International Monetary Fund (IMF) had revised the revenue collection target for the third time to Rs3.908tr from Rs4.8tr - a reduction of Rs892 billion - owing to the sharp economic slowdown after Covid-19.

On average, the FBR estimates that revenue collection fell by Rs223bn per month after the outbreak of coronavirus.

Contrary to this, in the pre Covid-19 period, the FBR missed tax collection target for July-February FY20 by a whopping Rs484bn and received Rs2.725tr during this period, as against the benchmark of Rs3.209tr.

However, revenue in 8MFY20...