17pc increase in revenue, 40pc in return filers
ISLAMABAD: The Federal Board of Revenue (FBR) collected revenues of Rs320 billion in January 2020, showing an increase of 17% over the same month of last year.
The revenue figure is likely to increase due to book ajdustments and late reporting by offline branches of NBP, said an FBR statement.
The overall numbers were also showing a healthy growth of around 17%, it said, adding it was wrong to assume that the tax collection was only growing at the speed of nominal GDP growth.
In fact, the current tax base was dependent on growth of largescale manufacturing, imports and non-food/ non-medicine/ non shelter / high end consumption inflation as well as on wage rate increases and nominal increase after depreciation corporate profits and not on nominal GDP, the statement added.
All these indicators were going through macroeconomic adjustment phase and hence tax growth of 17% represents was a huge turnaround by FBR in this fiscal year, the official statement said.
The last five years data shows that FBR collected almost 50 to 55% of its taxes at import stage. The import compression has brought growth in this component to almost zero.
All the growth in taxes is now supported by almost 30% growth in domestic taxes, which is an unprecedented growth number in the history of FBR.
Number of returns this year has also shown a phenomenal increase of 40% over same date last year.
The number of returns for 2018 on 31.1.2019 was 16,45,828 which has increased to 23,42,642 on 31.1.2020 for tax year 2019 returns.
The effort this year has been done in collaboration and with active association of business community and it is hoped that this cooperation will go on in coming months.
FBR has also been very active in removing irritants related to exporters refunds and has issued an unprecedented amount of refunds this year.
The total of refunds issued this year is around Rs120 billion as opposed to Rs65 billion last year.
FBR is all geared up to put in its best efforts for better revenue mobilization which is vital for well being of citizens of Pakistan.- APP