During the current financial year 2021-22, the Federal Board of Revenue (FBR) earned net revenue of Rs. 4,382 billion, surpassing the objective of Rs. 4,134 billion by Rs. 247 billion. This is a 29.1 percent increase over the Rs. 3,394 billion collected during the same time previous year.
The provisional revenue collection data for the months of July 2021 to March 2022 of the current financial year 2021-22 have been announced by the Federal Board of Revenue (FBR).
The net collection for the month of March 2022 was Rs. 575 billion, up 20.5 percent from Rs. 477 billion in March 2021.
Gross revenues, on the other hand, grew by 28.9% in the current financial year, from Rs. 3,577 billion in July 2020 to March 2021 to Rs. 4,611 billion in July 2021 to March 2022. Similarly, the number of refunds disbursed in March 2022 was Rs. 31.9 billion, compared to Rs. 26.3 billion in March 2021, a 21.3 percent rise.
Similarly, refunds of Rs. 229 billion were paid from July 2021 to March 2022, a 25% increase over the Rs. 183 billion paid the previous year. It is worth noting that the continuous remarkable and consistent growth trajectory in revenue collection has been achieved despite the government providing enormous tax relief to the general public on a variety of vital commodities.
Sales Tax on all POL goods has been slashed to zero for the first time in the country’s history, costing the FBR Rs. 45 billion in March 2022. Similarly, sales tax exemptions on fertilisers, pesticides, tractors, autos, and oil and ghee generate Rs. 18 billion in monthly income. In the same way, zero-rating on pharmaceutical items lost the FBR Rs. 10 billion in Sales Tax in March 2022.
As a result, during the month of March 2022, these relief measures reduced revenue collection by roughly Rs. 73 billion. Furthermore, revenue collection was hampered in March by political instability and import compression.