Federal Minister for Planning and Development Asad Umar on Friday lauded the Federal Board of Revenue’s (FBR) performance after it surpassed its assigned tax collection target by a margin of Rs57 billion in July.
“Excellent FBR tax collection in July, Rs57 bn more than target, reflect good performance of new FBR team and a sharp bounce back of Pakistan economy due to a highly successful covid control effort , allowing economic activties to resume, while other countries continue to struggle,” Umar tweeted.
Excellent FBR tax collection in july, Rs. 57 bn more than target, reflect good performance of new FBR team & a sharp bounce back of Pak economy due to a highly successful covid control effort , allowing economic activties to resume, while other countries continue to struggle
— Asad Umar (@Asad_Umar) July 31, 2020
According to details, FBR collected Rs300bn during the first month of the current fiscal year against an assigned target of Rs243bn for July 2020.
Inland Revenue overachieved its target by Rs52bn, whereas the Customs Wing exceeded the target by Rs5bn. It is worth mentioning that in July 2019, net collection of Inland Revenue was Rs236bn, a statement issued by FBR added.
This growth has been achieved despite economic conditions caused by Covid-19 during which the country mostly remained in lockdown state. The revenue trajectory also beat the adverse impact of the government’s import compression policy.
To redress the hardships of the business community caused by Covid-19, an unprecedented amount of refunds to the tune of Rs15bn have been disbursed during July 2020, as compared to refunds of Rs7bn during July 2019.
Sales Tax refunds are being issued under centralised and automated system called FASTER, which is clearing refunds to exporters within 72 hours for the first time as committed by the government in July 2020. This has facilitated exporters and the industry, easing their liquidity crunch.
The FBR is also engaging with trade and industry to mitigate their genuine grievances, it added.