The Federal Board of Revenue (FBR) has crossed the Rs4,000 billion tax collection mark for the first time in the Pakistan’s history, Prime Minister Imran Khan said Saturday, lauding the authority.
“I commend the efforts of FBR in crossing historic milestone of Rs4,000 bn in any year for the first time ever,” the prime minister said in a tweet, days before the presentation of the budget for the next fiscal year.
The prime minister said the FBR’s tax collection reached Rs4,143 — and still counting — which reflected the government’s broad-based economic revival policies.
The premier noted that the tax collection was 18% higher than what was recorded in the same period last year.
In March, the FBR had exceeded its target for the first eight months of the current fiscal year (July-February) by fetching Rs2,916 billion against its desired target of Rs2,898 billion, seeing an increase of Rs18 billion, The News reported.
As per the provisional collection figures, the FBR had collected net revenue of Rs2,916 billion during the July-February period, which has exceeded the target of Rs2,898 billion, representing a growth of close to 6% compared to the Rs2,750 billion collected during the same period last year.
The monthly net collection for February was Rs343 billion against the required target of Rs325 billion, representing an increase of 8% over February 2019 and 106% of the target. The collection figures are likely to improve further when book adjustments are finalised.
During the same month, March, PM Imran Khan had commended the FBR for its efforts in achieving growth of 57% in April, 2021 with collections recorded at Rs384 billion compared to Rs240 billion in April last year.
“I commend FBR efforts on achieving growth of 57% in April 2021 with collections recorded at Rs384 billion compared to Rs240 bn in April 2020,” the premier wrote on Twitter.
The prime minister noted that the collections reached Rs3,780 billion in July-April — 14% higher than the same period last year.
‘Tax-to-GDP ratio has fallen’
Meanwhile, PML-N President Shahbaz Sharif said despite imposing additional taxes every year, the PTI-led government is falling behind in tax collections.
He claimed that the PML-N had left behind after five years a 5.8% growth rate, bringing it up from 2.8%, and had reduced inflation from 11.8% to 3.8%.
Shahbaz further claimed that tax revenue in the party’s time had also doubled from Rs1,946 to Rs3,900.
The PML-N president said at the end of his party’s rule in the Centre, the tax-to-gross domestic product (GDP) ratio stood at 13%, while now, it has fallen to 10.9% in three years.
“The people have rejected both, the IMF budget and the government that brought it. When the PML-N left power in 2018, Pakistan’s economy stood at Rs313 billion,” he said.
Three years into the PTI regime the economy has plunged to Rs296 billion, he said.
Purchasing power has dipped by 13%, he said, adding that in 2017-18 the per capita income was $1,560, whereas in 2020-21 it has dropped to $1,431.