Net revenue

FBR receives net income of Rs 458 billion in July 2022 – Business




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This represents growth of approximately 10%.









ISLAMABAD (APP) – The Federal Board of Revenue (FBR) collected net revenue of Rs 458 billion in July 2022, which exceeded the target of Rs 443 billion.

According to provisional revenue collection figures for the month of July 2022 released by FBR on Sunday, the council started the current financial year 2022-23 by beating the July target by a significant margin of Rs 15 billion. .

This represents a growth of about 10% compared to the collection of Rs 417 billion during the same period last year.

These figures could still improve after accounting adjustments are taken into account. These collections are the highest ever recorded in July.

This outstanding revenue performance reflects FBR’s continued drive to continue its growth trajectory achieved over the past year.

On the other hand, gross inflow increased from Rs 438 billion in July last year to Rs 486 billion, showing an increase of 11%.

Similarly, the amount of reimbursements disbursed during the month of July was Rs 28 billion against Rs 21 billion paid last year, an increase of 32%.

This reflects FBR’s strong commitment to expedite repayments and thus prevent liquidity shortages in the sector.

The significant increase in revenue in July is largely the result of various policy and revenue measures introduced by the government in the 2022 budget law.

Unlike in the past, the emphasis is visibly on taxing the rich and the have-nots. As a result of this paradigm shift, domestic taxes contributed 55% to collection while import taxes remained at 45%. This reversed the trend. Previously, taxes at the import stage accounted for 52-53% of overall collection.

Similarly, the growth in domestic income tax is almost 31%, which is a remarkable shift towards direct taxation.

In addition, there is also a 118% increase in withholding tax on the sale of properties u/s 236-C due to the activation of a withholding tax provision applicable regardless of the tax period. detention. Similarly, the 40% increase in withholding tax u/s 147, especially of banking companies, is due to the change in the tax rate.

Moreover, the tobacco FED registered a record growth of over 47% or Rs 2.6 billion and the corresponding increase in the tobacco sector sales tax registered a record growth of 67%.

The FED’s increase in international air travel also saw growth of more than 200%.

In addition, Pakistani customs collected Rs 67 billion in customs duties during the month of July 2022 against 65 billion collected during the same period last year, recording a marginal growth of 2.58%.

However, it suffered a drop from the target set for July of Rs 77 billion, which is due to the government’s import compression policy, aimed at controlling the outflow of US dollars.

In addition, FBR suffered a loss of approximately $11 billion in sales tax from zero-rating POL products.

It is pertinent to mention that the tax returns for the tax year 2021 reached 3.4 million rupees against 3.0 million for the tax year 2020, an increase of 13%.

Tax filed with returns in the 2021 tax year was Rs 76 billion compared to only Rs 52 billion in the 2020 tax year, a significant increase of 46%.

Additionally, building on its continued drive to integrate Tier 1 retailers across the country, approximately 23,265 POS terminals have been integrated into FBR’s real-time POS reporting system.

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