PM Imran commends FBR for achieving 'record' revenue collection in July

Prime Minister Imran Khan on Saturday commended the Federal Board of Revenue (FBR) for achieving 'record revenue collection' during the month of July.

According to the premier, the total current collection is Rs410 billion in the month of July. This was the 'highest ever' revenue collection for July and was 22% above the requisite target for the month.

“This is a reflection of the government’s policies for sustained economic growth & revival”, he said in a tweet.

The FBR collected Rs410 billion during the first month of the fiscal year 2021-22 as against the monthly target of Rs341.7 billion, according to statistics compiled by the revenue board on Friday. The monthly collection was equal to 7% of the annual target.

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The provisional collection was higher by 36.5% or Rs109 billion over the revenue generated during the same month of last fiscal year.

Like the previous fiscal year when the FBR had exceeded July’s target by Rs57 billion, it has taken a good start of the new fiscal year again.

Out of the Rs410 billion, the FBR collected Rs210 billion at the import stage, which was equal to 51.3% of the total monthly collection.

The heavy reliance on import taxes and duties may cause inflation in the country, as taxes paid at the import stage are usually recovered by increasing the prices. These import taxes are also causing an increase in the prices of electricity and petroleum products.

Earlier it was reported that the FBR collected Rs4.732 trillion in the FY20-21, exceeding the PTI government’s target and was 18% higher than the previous fiscal year.

During the fiscal year 2020-21 that ended on June 30, the FBR collected Rs4.725 trillion – up by Rs727 billion or 18% over the collection in the preceding year, said the provisional figures compiled by the FBR.

However, the collection fell short by Rs238 billion against the original target of Rs4.963 trillion set at the start of the fiscal year.

During his post-budget press conference, former finance minister Dr Abdul Hafeez Shaikh had appealed to the provinces that they should make their budgets on realistic assumptions as the Rs4.963 trillion target might not be achieved.