Miftah lauds FBR for remarkable revenue growth  

During the fourth quarter (April-May-June), when the incumbent coalition government assumed power, Rs1741 billion revenues were collected, which showed 29 percent increase when compared to the collection of Rs1351 billion during the corresponding period of last year.

Finance Minister Mr. Miftah Ismail and Chairman FBR Asim Ahmad addressing press conference.

ISLAMABAD, Jul 1 (APP):Federal Minister for Finance and Revenue Miftah Ismail on Friday said the Federal Board of Revenue (FBR) had created history by collecting Rs 763 billion revenue during a single month (in June).

Addressing a press conference with FBR Chairman Asim Ahmad, the minister said the board had never crossed Rs 600 billion bench mark in the past as its previous collection record for a month was Rs 580 billion.

The FBR’s performance of the last quarter was excellent as the collection grew by 32 percent, he added.

Lauding the efforts made by the FBR chairman and its officials, the minister said the tax collection increased despite the fact that the government had paid Rs 39 billion refunds last month, which were more than 44% percent as compared to those of the corresponding period of last year.

He said total Rs105 billion refunds had been paid during the fiscal year 2021-22, which were 55% more than those of the last year.

Miftah said during the fourth quarter (April-May-June 2022), when the incumbent coalition government assumed power, Rs 1,741 billion revenue was collected, which showed 29 percent increase as compared to collection of Rs 1,351 billion during the corresponding period of last year.

It was the period when he [Miftah] had taken charge as finance minister and Asim Ahmad become the FBR chairman, he added.

The minister said they had collected the amount without imposing sales tax on the petroleum products, which had been abolished by the previous government. The incumbent government had crossed the target of Rs 6,100 billion, which the Pakistan Tehreek-e-Insaf regime had to generate, including sales tax collection on the petroleum products.

He said he was told by the last FBR chairman that it would be difficult to even collect Rs 6,000 billion without imposing sales tax on the petroleum products, and he too had proposed Rs 6,050 billion revenue collection target to the International Monetary Fund. The present government, however, crossed the target and collected total revenue of over Rs 6,100 billion.

The minister said during the last quarter, if sales tax was not included then there was 45 percent increase in both gross and net revenue collections as compared to the corresponding period of last year.

He said the FBR also made a record by collecting Rs 379 billion income tax, as its previous maximum collection was Rs 262 billion, showing an increase of 45 percent. He asserted that the board did not take a single rupee as advance tax.

The minister said the FBR had cleared all processed claims of sales tax and income tax and the ones made though FASTER along with the drawback claims of local taxes and levy (DLTL).

FBR Chairman Asim Ahmad said it was a team effort of the FBR staff that the milestone was achieved. The revenue collection declined in March 2022 as compared to July 2021 as sales tax domestic witnessed Rs 40 to Rs 45 billion deficit, so revised revenue collection target was a challenge.

However, he added, the FBR made a strategy, and took enforcement and administrative measures, with special focus on the recovery of current dues and arrears, and managed to collect Rs 250 billion, which was an historic achievement.

He said as many as 175,000 returns were filed during the last quarter whereas there had been increase of 58% in advance tax, which grew from Rs 360 billion last year to Rs 565 billion during the fiscal year 2021-22.

Asim Ahmad said the board had planned to enhance technological intervention, and put in place track and trace system on cigarettes and 12 other companies whereas fertilizer and cement sectors would also be included in the system.

He said last year 4,000 new retailers were put on Point of Sale (PoS) system and the board aimed to include 12,000 new retailers in POS system during the current year.

He said the prime minister had made a strategic road map and quarterly targets had been assigned with timelines. In addition, the FBR aimed to bring 700,000 new traders in fixed tax scheme.