The tax revenue collected by Federal Board of Revenue (FBR) has seen a shortfall of Rs. 458 billion provisionally. FBR collected Rs. 3,063 billion during July-March (2019-2020) against the revised target of Rs. 3,521 billion.
The current lockdown has caused a huge revenue loss to the FBR, as revenue shortfall increased to Rs. 458 billion in the first nine-month (July-March) period.
The figures, however, show a growth of almost 30% or as compared to the corresponding period last year.
The provisional figures of revenue collection of March 2020 showed that the FBR’s net collection stood at Rs. 334 billion against the revised target of Rs. 595 billion, reflecting a shortfall of Rs. 261 billion. Taking into account the continuing lockdown since the coronavirus outbreak in Pakistan, the FBR estimated revenue loss within the range of Rs. 300 to Rs. 380 billion till June 2020.
FBR’s official estimates show that the revenue collection could touch a maximum figure of Rs. 4.4 trillion.
The provisional revenue collection showed that the FBR’s gross collection stood at Rs. 3,147 billion in the first nine months of 2019- 2020, however, the FBR paid refunds of Rs. 98.2 billion, resulting in net collection of Rs. 3,039 billion.
There was also book adjustment of Rs. 14.6 billion.
FBR’s net collection at the provisional stage stood at Rs. 3,063 billion. The board had paid tax refunds of Rs. 59.5 billion in the same period of the last financial year.
Breakup of revenue collection revealed that the sales tax collection amounted to Rs. 1.25 trillion during July-March against Rs. 1.04 trillion in the corresponding period of 2018-2019, reflecting an increase of 19.5 percent.
Income tax collection stood at Rs. 1.139 trillion during July-march 2019-2020 against Rs. 985 billion during the same period of 2019-2020, reflecting an increase of 15.6 percent. Customs duty collection was Rs. 471.3 billion during July-March 2019-2020 against Rs. 507.6 billion in the corresponding period of 2018-2019, reflecting a decrease of 7.2 percent.
The collection of the FED was Rs. 187.54 billion during July-March 2019-2020 as against Rs. 162.98 billion in the corresponding period of 2018-2019, reflecting an increase of 15.1 percent.
The International Monetary Fund (IMF) had already lowered revenue collection targets to Rs. 5.270 trillion from the budgetary projection of Rs. 5.503 trillion.
It is pertinent to mention that the FBR chairman Shabbar Zaidi is on indefinite leave. In his place, the country’s apex revenue body is currently being run by Member Administration Nausheen Amjad.
FBR Extends Date Sales Tax, Federal Excise Return
The Federal Board of Revenue has further extended the date of payment of sales tax and federal excise return for the tax period February 2020, up to April, 12, 2020.
According to a circular issued on Tuesday, the payment date was further extended till April 12, 2020 from March 31, 2020.
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