The Federal Board of Revenue (FBR) on Monday released the revenue collection information of the first two months of the current financial year i.e July & August-2020.
According to the released information, against the assigned revenue target of Rs551 billion, FBR has collected Rs593bn net revenue thus showing an increase of Rs42bn and 108 per cent of the assigned target. The net revenue collection in the first two months of the previous year 2019-20 was Rs582bn whereas it increased to Rs593bn this year.
Due to harmful effects of Corona outbreak on the economy and recent heavy spells of rain in Karachi, the revenue collection task was adversely affected but despite these challenges, FBR managed to collect gross revenue of Rs 624bn collectively in July and August which was Rs593bn in the corresponding months last year. Moreover, to redress the hardships of the business community caused by Covid-19, refunds to the tune of Rs30.6bn have been disbursed collectively in the first two months of FY-2020, as compared to refunds of Rs11bn during first two months of FY-2019.
Sales Tax refunds are being issued under a centralized and automated system called FASTER which is clearing refunds to exporters within 72 hours for the first time as committed by the Government.
FBR is also engaging with trade and industry to mitigate their genuine grievances. The FBR is proactively reaching out to Trade and Industry and resolving their issues. The FBR has also launched an unprecedented crackdown on corruption dismissing and suspending 76 officers and officials since July 2020.
In post COVID-19 pandemic scenario, the economic activities are now being revived through multiple economic stimuli and reliefs granted in the budget FY-2020-21. Hectic efforts were put up by the IR and Customs field formations in respect of collection of duty and taxes. The unfavorable situation adversely affected the customs clearance of imported cargo during the last week of this month and resultantly harmed the revenue collection.
According to the official figure, total customs duty collected during the first two months of the current FY-2020 is Rs92bn. Sales tax collection at import stage is on lower side as compared to the corresponding period of the previous year owing again to heavy rainfall in Karachi. Furthermore, exemption granted in respect of Additional Customs Duty (ACD) on more than 1600 tariff lines in budget FY 2020-21, also subsequently resulted into decrease in sales taxable value.
In line with the vision and directives of the Prime Minister of Pakistan to curb the menace of smuggling, the Federal Board of Revenue (FBR) vigorously launched a countrywide counter-smuggling drive. The FBR accordingly directed its field formations to make all out efforts to intensify anti-smuggling activities.