ISLAMABAD (News10) – Federal Board of Revenue (FBR) has released the revenue collection information of first month of current financial year i.e. July 2020.
According to the released information, against the assigned revenue target of Rs.243 billion, FBR has collected Rs.300 billion overshooting the target by a staggering Rs.57 billion, which is 125% of the assigned revenue target. The Inland Revenue overshot the target by Rs. 52 billion, whereas the Customs Wing exceeded the target by Rs.5 billion despite 25 billion relief given in Customs duty. It is worth mentioning that July 2019, net collection of Inland Revenue had remained Rs.236 billion.
To redress the hardships of the business community caused by Covid-19, an unprecedented amount of refunds to the tune of Rs.15 billion have been disbursed during July 2020, as compared to refunds of Rs.7 billion during July 2019.
Sales Tax refunds are being issued under centralized and automated system called FASTER which is clearing refunds to exporters within 72 hours for the first time as committed by the Government in July 2020. This has facilitated the exporters and the industry easing off their liquidity crunch.
According to the official figure, total customs duty collected during July 2020 is over Rs. 42 billion which is 6% higher than that collected in same period of July 2019. This is despite the fact that there is less than 1% growth in import values during this period.
The higher growth in FBR revenues is primarily on account of better supervision and improved administrative controls despite economic conditions caused by Covid-19 during which the country mostly remained in lockdown state. The revenue trajectory also beat the adverse impact of governments’ import compression policy.
FBR is also engaging with trade and industry to mitigate their genuine grievances. FBR is proactively reaching out to Trade and Industry and resolving their issues. FBR has also launched an unprecedented crackdown on corruption dismissing and suspending about a dozen officers and officials only during the month of July 2020.