FBR Achieves Unprecedented Growth of 66 Percent in Direct Taxes Collection During the Month of December 2022 Compared to December 2021

Federal Board of Revenue (FBR) has demonstrated a remarkable revenue collection performance in the first six months of the current financial year 2022-23 and has collected Rs3428 billion for the first six months against Rs2929 billion collected in the corresponding period of last year depicting an increase of 17 percent. FBR collected Rs740 billion for the month of December 2022 against Rs599 billion in the same month last year showing an impressive growth of almost 24 percent as compared to the same month. This performance is despite huge import compression and zero rating on petroleum

Direct tax collection continues to grow at a robust pace, which has shown growth of 66 percent during the month of December 2022 compared to December 2021, a clear indicator of the policy of shifting the tax burden on the wealthy and affluent. Direct tax collection for the first six months has also registered an unprecedented growth of 49 percent. This was achieved even though certain policy interventions having a revenue impact of Rs250 billion introduced through the Finance Act 2022 could not be implemented as these are subjudice in the courts. The target for the month of December was Rs965 billion which could not be achieved due to the aforementioned reason.

The revenue collection performance is also exceptional when viewed in the context that FBR has also issued refunds of Rs176 billion during the first half of the current financial year as against Rs149 billion during the corresponding period of last year.

FBR also appreciates all those taxpayers who contributed to this collection and recognizes the endeavors of all field formations and officers for their untiring efforts and commitment to optimize revenue collection in difficult times where taxes on imports have been showing negative growth. The revenue collection figures are clear indicators of the achievement of the assigned revenue targets for the current financial year. This unprecedented growth in tax revenues, especially direct taxes underscore the resolve of the Government and FBR to make Pakistan a thriving nation. FBR hopes that when import restrictions are eased and court cases come to a logical conclusion, the lost revenue will also be retrieved during the current fiscal year.

Source: IBP

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