FBR Exceeds Its Revenue Collection Target By Rs34 Billion In April
According to preliminary data obtained by tax authorities on Friday, the Federal Board of Revenue (FBR) exceeded its revenue collection goal by Rs34 billion to Rs384 billion in April, the second-highest collection in the second half of the current fiscal year (FY21).
Despite the effect of Covid-19 on all sectors of the economy, April was the second consecutive month in which FBR revenue collection exceeded the estimated monthly goal. The net collection for April was Rs384 billion against a goal of Rs350 billion, representing a 9.7 percent rise. Revenue generation increased by 57 percent as compared to the collection of Rs244bn in April 2020.
During the period July 2020-April 2021, the FBR received net revenue of Rs3.78 trillion, exceeding the target of Rs3.637 trillion by more than Rs143 billion. This reflects a 14 percent increase over the previous year’s collection of Rs3.320 trillion. Because of the Covid-19 pandemic, Pakistan was put on lockdown in mid-March 2020, resulting in the lower collection during the last year’s monthly collections in April 2020 and onwards.
This year’s refunds totaled Rs195 billion, up from Rs118 billion charged the previous year, a 65.3 percent rise. While planning the FY21 budget, the government assured the International Monetary Fund (IMF) that it would raise Rs4.96 trillion as opposed to Rs3.99 trillion in FY20, a 24.4 percent rise. However, the IMF has reduced the revenue estimate for the current fiscal year to Rs4.691 trillion.
To meet the revised goal, the FBR will need to raise Rs911 billion in the current fiscal year’s May-June period. This goal seems to be within reach unless there is no complete lockdown in the country and companies continue to operate. The IMF has introduced an Rs5.963tr tax generation goal for the FBR for next year, up from an Rs4.691tr updated target for the current fiscal year.