LAHORE – Federal Board of Revenue (FBR) has failed to achieve the revenue collection target for May 2023.
As per the official announcement of FBR on Twitter, the gross revenue collection stood at Rs605 billion in May 2023.
Against a target of Rs621 billion, net revenue collection was Rs572 billion after the issuance of refunds amounting to Rs33 billion. As such the revenue collection shortfall was Rs49 billion.
In domestic income tax, Rs205 billion were collected as compared to Rs131 billion in May 2022 reflecting a growth of 57%. Rs100 billion have been collected in domestic sales tax showing a growth of 28%. In total, a cumulative growth of 44% has been achieved in domestic taxes.
On the import side, however, the same momentum could not be maintained due to unprecedented compression in imports which in USD witnessed a 37% decline in May 2023 compared to May 2022.
The drastic reduction in the import of high-duty items has changed the import mix. The change in the import mix has impacted the collection of Customs duties and other taxes. Despite an 18% dip in the collection of Customs duties & 11% decline in overall tax collection at the import stage, FBR has managed to register an overall growth of 16% as compared to the previous year.
