ISLAMABAD, Jun 11 (APP):The overall Federal Board of Revenue (FBR) tax collection grew by 10.8 percent during the first ten months of financial year (2019-20) as compared to the corresponding period of last year.
According to the Economic Survey 2019-20 launched here on Thursday, the FBR tax collection were recorded at Rs 3,300.6 billion during July-April (2019-20) as against Rs 2,980.0 billion during the July-April (2018-19).
The FBR tax collection has witnessed a remarkable turnaround during the current fiscal year after posting negative growth of 0.4 percent during July-April 2019-20.
Within the total, the domestic component of tax revenue collected by the FBR grew by 14.7 percent to stand at Rs 2,777.7 billion in first ten months of the current fiscal year against Rs 2,421.1 billion during last year.
The rise in tax collection is attributed to various policy initiatives implemented at the start of FY2020 such as charging sales tax on more items at the retail price under 3rd Schedule, reinstatement of taxes on telecom services and an upward revision of tax rates on various salary slabs.
In addition, an upward revision in the federal excise duty (FED) rates and the abolishment of the zero-rating regime on five export-oriented sectors provided further impetus to FBR tax collection.
The net collection of direct taxes has registered a growth of 14.1 percent during the first ten months of fiscal year 2019-20.
The net collection has increased from Rs 1,071.7 billion to Rs 1,223.2 billion. The bulk of the tax revenues of direct taxes are realized from income tax.
The major contributors of income tax are withholding tax, voluntary payments and collection on demand.
The gross and net collections of indirect taxes have witnessed a growth of 11.4 percent and 8.9 percent respectively and it is accounted for 62.9 percent of the total FBR tax revenues.
Within indirect taxes, net collection of sales tax increased by 15.7 percent and the gross and net sales tax collection during July-April (2019-20) has been Rs 1,424.8 billion and Rs 1,348.4 billion respectively, showing a growth of 20.1 percent and 15.7 percent respectively.
In fact, around 55.0 percent of total sales tax was contributed by a sales tax on import during July-April (2019-20), while the rest was contributed by the domestic sector.
The collection of federal excise duties (FED) during July-April (2019-20) were recorded 12.0 percent growth and the net collection has stood at Rs 206.1 billion during July-April (2019-20) as against Rs 184.0 billion during the same period last year.
The major revenue spinners of FED are cigarettes, cement, services and beverages.
The customs duty has registered a negative growth of 6.8 percent and 6.5 percent in gross and net revenues respectively.
The net collection has decreased from Rs 558.9 billion during July-April (2018-19) to Rs 522.8 billion during July-April(20169-20).
The major revenue spinners of customs duty have been vehicles, mineral fuels, iron and steel, electrical machinery, plastic and edible fruits.