03/08/2022
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Press Release
FBR COMMENCES THE CURRENT FINANCIAL YEAR BY EXCEEDING THE JULY TARGET BY A SIGNIFICANT MARGIN
The Federal Board of Revenue (FBR) has released the provisional revenue collection figures for the month of July 2022. According to the provisional information, FBR has collected net revenue of Rs. 458 billion during July 2022, which has exceeded the target of Rs 443 billion by Rs 15 billion. This represents a growth of about 10 % over the collection of Rs. 417 billion during the same period, last year. These figures would further improve after book adjustments have been taken into account. These collections are the highest ever in the month of July. This outstanding revenue performance is a reflection of FBR's continued resolve to build further on its growth trajectory achieved during last year.
On the other hand, the gross collection increased from Rs. 438 billion during July last year to Rs. 486 billion, showing an increase of 11%. Likewise, the amount of refunds disbursed during July was Rs. 28 billion compared to Rs. 21 billion paid last year, showing an increase of 32%. This is reflective of FBR’s strong commitment to fast-track refunds and thereby prevent liquidity shortages in the industry.
The significant revenue increase in July is largely the outcome of various policy and revenue measures introduced by the government in Finance Act 2022. Unlike in the past, there is a visible focus on taxing the rich and affluent. Owing to this paradigm shift, the domestic taxes contributed 55% in collection while import taxes remained 45%. This has reversed the trend. Previously taxes at import stage were 52-53% of overall collection. Likewise, the growth in domestic Income Tax is almost 31% which is a remarkable shift towards direct taxation. Likewise, there is a significant upsurge in Advance Tax collected during July. There is also 118% increase in Advance Tax on sale of properties u/s 236-C due to enabling of a withholding provision applicable irrespective of the holding period.
Likewise, 40% increase in Advance Tax u/s 147, especially from banking companies is due to change in tax rate.
Similarly, increase in the rate of FED on cigarettes/to***co has paid its dividends. The FED from to***co has registered a record growth of over 47% or Rs 2.6 billion and the corresponding increase in Sales Tax from To***co Sector has registered a record 67% growth. The increased FED on International Air Travel has also registered growth of over 200%.
