Prime Minister Imran Khan on Wednesday expressed his confidence in the Federal Board of Revenue (FBR) 'comfortably' achieving its annual tax collection target of Rs5,829 billion.
The premier took to his official Twitter handle to announce that the FBR had collected Rs850 billion during the first two months of the current fiscal year, exceeding its own target by 23%.
According to PM Imran, this reflected a growth of 51% in revenue compared to the same period last year.
Good news on tax collection. FBR collected Rs.850 bn during July & August 2021, exceeding its own target figure by 23% & reflecting growth of 51% in revenue over same period last yr. At present rate, annual collection target of Rs.5,829 bn will be comfortably achieved InshaAllah.— Imran Khan (@ImranKhanPTI) September 1, 2021
The FBR has exceeded its first two months target and pooled Rs850 billion at double the needed growth rate to hit the annual goalpost, strengthening the government’s case in the eyes of the International Monetary Fund (IMF).
But 55% of the total revenues or Rs458 billion were collected at the import stage, which is also becoming a reason for increasing prices of various commodities. The FBR also collected 70% or Rs458 billion in indirect taxes – general sales tax, customs duty, and federal excise duty which are the three main sources of indirect taxes.
Against the two-month target of Rs690 billion, the FBR has provisionally collected Rs850 billion during the July-August period of this fiscal year, exceeding the target by Rs160 billion, said FBR Chairperson Dr Mohammad Ashfaq while addressing his maiden press conference.
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