ISLAMABAD: Pakistan’s tax collection body on Saturday released the provisional revenue generation figures between July 2021 and April 2022, reporting an increase of 28.6 percent in comparison to the corresponding period during the last fiscal year.
The country has mostly found it difficult to generate enough revenue to meet its growing financial needs, making experts believe its economic managers should widen the tax net instead of imposing greater tax burden on a handful of social segments.
According to a statement released by the Federal Board of Revenue (FBR), the net tax collection of Rs4,858 billion during the stated period exceeded the target of by Rs239 billion.
“This represents a growth of about 28.6 percent over the collection of Rs. 3,778 billion during the same period, last year,” the statement said. “The net collection for the month of April, 2022 realized Rs. 480 billion representing an increase of 24.9 percent over Rs. 384 billion collected in April, 2021.”
It informed the amount of refunds disbursed during April 2022 was Rs34.6 billion while the same figure stood at Rs19.6 billion in April 2021, registering an increase of 76.2 percent.
The statement added that Rs264 billion were refunded during the current fiscal year compared to Rs203 billion paid during the last year, showing an overall increase of 30.1 percent.
Reacting to the development, Pakistan’s finance minister Miftah Ismail praised the FBR for increasing tax collection by 28.6 percent.
He said in a Twitter post that the previous administration promised the International Monetary Fund (IMF) to make upward revision in the revenue generation target from Rs5,900 billion to Rs6,100 billion “without actually changing FBR targets.”
He added that the Pakistan Tehreek-e-Insaf (PTI) government had also revised sales tax on fuel to zero.
“But we are determined to achieve this target of Rs 6100 billion, which will require Rs 621 billion per month in May & June,” Ismail said. “It’s an uphill task but I am sure the FBR will give it their best. Here is wishing the new Chairman and his team ... the best of luck.”
The FBR said in its statement “the ongoing unprecedented and constant growth trajectory in revenue collection” had been achieved despite “massive tax relief” given by the government on various essential items to citizens.
It said it had introduced a number of innovative interventions both at policy and operational levels to maximize revenue potential through digitization, transparency, and taxpayers’ facilitation.
