FBR Surpasses May Collection Target By 8pc
Islamabad: The Federal Board of Revenue (FBR) exceeded its collection target by 7.82 percent in May, reaching Rs386 billion, the third-highest collection in the second half of the current fiscal year (FY21), according to preliminary data released by the tax authorities on Monday.
Despite the impact of Covid-19 on all sectors of the economy, FBR revenue collection exceeded the projected monthly target for the third consecutive month in May. After accounting adjustments, the FBR expects to pocket a few more billions.
The net collection for May was Rs386 billion against a target of Rs358 billion, representing an Rs28 billion increase. Revenue collection increased by 69 percent compared to Rs229 billion in May 2020.
The FBR collected net revenue of Rs4.167 trillion between July 2020 and May 2021 (11MFY21), exceeding the target of Rs3.994 trillion by more than Rs173 billion, or 4.33 percent. This represents a 17 percent increase over the Rs3.549 trillion collected during the same period last year.
Pakistan was placed under lockdown in mid-March 2020 as a result of the Covid-19 pandemic, which resulted in the lower collection during the previous year’s monthly collections in May 2020 and onwards. Despite the economic impact of Covid-19, collection exceeded the target for the third month in a row.
The gross revenue collection, including refunds, reached Rs4.383tr in comparison to Rs3.674tr in the same months last year, representing a 19.3pc increase. The number of refunds distributed this year was Rs216bn, up from Rs125bn paid the previous year, representing a 73 percent increase.
While preparing the FY21 budget, the government assured the International Monetary Fund (IMF) that it would raise Rs4.96 trillion against Rs3.99 trillion collected in FY20, representing a 24.4 percent increase. The IMF, however, has revised this revenue target downward to Rs4.691tr for the current fiscal year. The FBR will need to collect Rs523 billion in June to meet the target, which is attainable and likely to be exceeded.
The IMF has proposed an Rs5.963 trillion revenue collection target for the FBR for next year, up from an Rs4.691 trillion revised target for FY21. Finance Minister Shaukat Tarin, on the other hand, stated that FBR revenue collection will reach Rs5.80 trillion in the fiscal year 2021-21.