ISLAMABAD: In November, the Federal Board of Revenue (FBR) tax collection stood at Rs346 billion, missing the Rs348 billion mark. However from Rs335bn collected in the same month last year it recorded over 3pc year-on-year rise, provisional data showed on Monday.
However, during the first half (July-November) of this fiscal year the board raised Rs1.686 trillion, beating the estimated target of Rs1.669tr by Rs17bn or 1.01pc.
Dr Waqar Masood Khan, special assistant to the Revenue Prime Minister, told Dawn that the board was working to reach monthly goals. The economy, however was slowing down due to the partial lockdown of economic operations, he said.
Dr Masood said that, thanks to corporate income tax payments, revenue generation will be higher in December. However in the case of a re-imposition of lockout to check the second phase of the Covid-19 pandemic, he said things could get worse.
In November, income tax collection dropped short of the Rs21bn target to Rs109bn against the expected Rs130bn target. However as compared to the Rs105bn collected in the same month last year it rose 4pc.
The realisation of the income tax remains well below estimates, considering the implementation of many steps.
Sales tax collection, meanwhile, jumped 14pc from Rs152bn in the same month last year to Rs173bn in November. The estimated Rs142bn goal, however was surpassed by over 21pc. Development was due to the rise in POL prices, the increase in imports and the resumption of economic activity during the month.
The collection of federal excise duty (FED) slipped 18pc to Rs23bn compared to last year’s Rs29bn. The FED target was set at Rs27bn for November, which was missed by Rs4bn.
In comparison, in the same month of last year, customs collection increased 4pc to Rs57bn as compared to Rs55bn. For the month under analysis, the estimated target was Rs49bn.
In the next two days, the FBR is expected to book additional profits following book changes and reconciliation.
In the first five months of this fiscal year the payment of Rs81bn refunds, an improvement of 97pc over the payment of Rs41bn last year, indicated a sharp acceleration in economic activity that contributed to the revival of industrial output.
The government pledged the International Monetary Fund to lift Rs4.963tr in FY21 versus Rs3.989tr raised in FY20, an estimated rise of 24.4pc, when planning the budget for the current fiscal year.