Record tax collection by FBR of Rs. 6.1 trillion
In FY 22 FBR has provisionally collected tax of Rs. 6.1 trillion against the target of Rs. 5.9 trillion. The tax collection was about 29% or Rs. 1.38 trillion higher than the previous year. FBR had missed six monthly target during the past fiscal year but eventually ended up meeting the upward revised annual target for the first time in recent history.
The key feature behind this significant performance of FBR is an increase in direct taxes which has registered a growth of 32% over the last year and this was in line with the government policies to enforce taxation on income earned and reduce the burden of indirect taxation. Moreover, according to FBR, Rs. 2,278 billion was collected from income tax, Rs. 2,525 billion was collected as sales tax, Rs. 1,000 billion from custom duties and Rs. 322 billion from federal excise duty.
The amount of refunds paid during the fiscal year FY 22 by FBR has also increased to Rs. 335 billion compared to Rs. 251 billion in the last year. Total refund of Rs. 105 billion was paid in the last quarter, which is one-third of the total tax refund of Rs. 335 billion.
Out of a total of Rs. 6.1 trillion tax collection by FBR in FY 22, a total of Rs. 1.74 trillion (approximately 28.4% of the total collection) was collected in the last quarter. FBR collected Rs. 3.1 trillion at import stage on account of withholding taxes, sales tax at import stage and custom duties which collectively makes 51% of the total collection.
The annual tax collection of Rs. 6.1 trillion was mainly backed by taxes on import stages as mentioned above. But anyway it was a great effort from FBR