Rs.357 Billion revenue target set for May

The revenue collection target of the Federal Board of Revenue (FBR) has been set at Rs357 billion for May 2021 and Rs636 billion for June 2021.

Sources told Business Recorder here on Tuesday that the targets of May and June have been assigned to the tax machinery for the remaining period of 2020-21.

The FBR is required to collect Rs357 billion in May 2021 to meet the downward revised revenue collection target of Rs4.7 trillion by the end of current fiscal year. The revenue collection target of June has been projected at Rs636 billion.

According to the FBR’s data, the FBR has collected net revenue of Rs3,780 billion during Jul-April (2020-21), which has exceeded the target of Rs3,637 billion by more than Rs143 billion.

This represents a growth of about 14 percent over the collection of Rs3,320 billion during the same period last year.

The net collection for the month of April was Rs384 billion, against a required increase of Rs242 billion, representing an increase of 57 percent over Rs240 billion collected in April 2020 and 159 percent of the target.

The year-on-year growth of 57 percent is unprecedented particularly as it is realised on the heel of 46 percent in March.

These figures would further improve before the close of the day and after book adjustments have been taken into account.

On the other hand, the gross collections increased from Rs3,438 billion during this period last year to Rs3,976 billion, showing an increase of 16 percent.

The amount of refunds disbursed was Rs195 billion compared to Rs118 billion paid last year, showing an increase of 65 percent.

Pakistan Customs has collected Rs606 billion under the head of customs duty in first 10 months of FY 2020-21 against the assigned target of Rs507 billion and exceeded its target by Rs99 billion, which is 20 percent more than the assigned target.

Whereas during the month of April 2021 an amount of Rs65 billion has been collected under the head of customs duty against the monthly target of Rs59 billion which is again 10 percent more than the assigned monthly target.

It is quite important to mention that an amount of Rs88 billion was collected more under the head of customs duty in the first 10 months of current financial year as compared to FY 2019-20, despite the re-arrival of COVID-19 pandemic and has shown a growth of 17 percent as compared to previous financial year, which is quite remarkable.