17% increase in revenue, 40% in Return Filers

[Shahzaz ud din]

17% increase in revenue, 40% in Return Filers
By
News Desk
-
February 1, 2020

Feb 01, 2020: The Federal Board of Revenue (FBR) collected revenues of Rs320 billion in January 2020, showing an increase of 17% over the same month of last year.

The revenue figure is likely to increase due to book ajdustments and late reporting by offline branches of NBP, said an FBR statement issued here Saturday.

The overall numbers were also showing a healthy growth of around 17%, it said, adding it was wrong to assume that the tax collection was only growing at the speed of nominal GDP growth.

In fact the current tax base was dependent on growth of Large Scale manufacturing, Imports and non food/ non medicine/ non shelter / high end consumption inflation as well as on wage rate increases and nominal increase after depreciation corporate profits and not on nominal GDP, the statement added.

All these indicators were going through macroeconomic adjustment phase and hence tax growth of 17% represents was a huge turnaround by FBR in this fiscal year, the official statement said.

The last five years data shows that FBR collected almost 50 to 55% of its taxes at import stage. The import compression has brought growth in this component to almost zero.

All the growth in taxes is now supported by almost 30% growth in domestic taxes, which is an unprecedented growth number in the history of FBR.

The officers and top hierarchy of FBR are almost working for 12 hours a day with extremely meagure resources to maintain this healthy growth despite all odds.

Number of returns this year has also shown a phenomenal increase of 40% over same date last year which shows trust and faith of people of pakistan for participation in this national cause.

The number of returns for 2018 on 31.1.2019 was 16,45,828 which has increased to 23,42,642 on 31.1.2020 for tax year 2019 returns.

FBR is conscious of the fact that taxes are a by-product of economic activity and it does not want to hurt economic activity by evangelical pursuit of taxes.

The effort this year has been done in collaboration and with active association of business community and it is hoped that this cooperation will go on in coming months.

FBR has also been very active in removing irritants related to exporters refunds and has issued an unprecedented amount of refunds this year.

The total of refunds issued this year is around 120 billion as opposed to 65 billion last year.

FBR is all geared up to put in its best efforts for better revenue mobilization which is vital for well being of citizens of Pakistan.

APP

Posted on: 2020-02-01T21:40:00+05:00
32488

 

[AZ1]

I see now why businessman of pakistan saying pakistan is going in wrong direction. They have to pay taxes

 

[Syed1.]

Ya Allah please grant patience to patwaris in these testing times. Seeing Pakistan progress under the great leadership of Khan may cause them to develop heart diseases.

 

[Pakistansdefender]

Most positive development. I hope they cross over 5 trillion mark. Even that would be huge for Pakistan

 

[Sulman Badshah]

Net effect is not 17% ... There is more than 12 % money devaluation since last year Jan ..

 

[PakSword]

Net effect is not 17% ... There is more than 12 % money devaluation since last year Jan ..

Aren't we talking about tax revenue which was collected in PKR even before?

 

[BATMAN]

Revenue is the wrong term for the money being extorted from people of Pakistan.
Term revenue hint's like some business has posted profit! While collecting tax is no business.
In history of world there has been many tyrants, who collected taxes same way as Imran Khan, but people only hated them.
Let's call it money extortion to be accurate!

 

[Imad.Khan]

Revenue is the wrong term for the money being extorted from people of Pakistan.
Term revenue hint's like some business has posted profit! While collecting tax is no business.
In history of world there has been many tyrants, who collected taxes same way as Imran Khan, but people only hated them.
Let's call it money extortion to be accurate!

I take it that in your eyes no business is making a profit in Pakistan?

 

[Thorough Pro]

They collect in PKR. 1 PKR is still 1PKR and they collected 17% more. Devaluation is a different sotory and has nothing to do with tax collection.

Net effect is not 17% ... There is more than 12 % money devaluation since last year Jan ..

 

[Sulman Badshah]

They collect in PKR. 1 PKR is still 1PKR and they collected 17% more. Devaluation is a different sotory and has nothing to do with tax collection.

I was talking about Net effect of money collected ... 1 PKR don't host same purchasing power as a year before

 

[ejaz007]

IMF team in Pakistan: Pakistan seeks Rs300 bn further cut in revenue target

Listen

ISLAMABAD: Pakistan has made a request to the visiting IMF mission to further slash down the FBR’s annual target second time by over Rs300 billion, bringing it down from Rs5.238 trillion to less than Rs5 trillion mark, The News has learnt.

However, this possible ‘fiscal adjustment’ will be linked with the government’s ability that how much it will be able to jack up on account of non-tax revenue target for the current fiscal year. The FBR authorities told the IMF team that realistically speaking they could not collect more than Rs4.6 or Rs4.7 trillion. It is yet to be seen how much the IMF will agree to relax the target. The IMF might allow the FBR to collect Rs4.938 trillion after holding more talksin the next 10 days.

This non-tax revenue can be increased through accelerating privatisation proceeds and windfall gains through one-off in shape of renewal of licences of mobile operators and increasing profits of State Bank of Pakistan (SBP).

The IMF in its initial response apprised Pakistani authorities that it was not good omen for the country’s economy to increase reliance on “one-off” items instead of depending upon the permanent increases in tax collection. “This one-off might evaporate next fiscal year so the FBR should focus on bringing untapped sectors fully into tax net,” official sources quoted the IMF high-ups as saying during the preliminary round of talks that kick-started here in Ministry of Finance on Monday in the absence of the FBR Chairman Shabbar Zaidi who is on leave on medical grounds for indefinite period. The FBR chairman will take final decision about his stay or quitting this position after consulting his doctors in next 15 days. However, the government has started searching for a new FBR chairman and different names are under consideration including Tariq Pasha, Hasan Mujtaba Memon and Muhammad Jehanzeb Khan.

Adviser to PM on Finance and Revenue Dr Abdul Hafeez Shaikh and Governor State Bank of Pakistan (SBP) Dr Reza Baqir led Pakistani side.

The FBR had initially envisaged tax collection target of Rs5.550 trillion on eve of last budget that was revised downward to the tune of Rs5.238 trillion after completion of first review under $6 billion Extended Fund Facility (EFF). On eve of kick-starting talks for the second review, the FBR made formal request for second time downward revision of the FBR target with the argument of slowdown of the economy and severe compression of imports.

When contacted, the Finance Ministry’s Special Secretary Omar Hameed Khan, who is also official spokesman, said that non-tax revenue target was budgeted at Rs1,162 billion for the current fiscal which would now be revised upwards to Rs1,400 billion.

However, official sources said the Ministry of Finance was pitching up even more target to non-tax revenue collection as the increased non-tax collection will help compensate the FBR shortfall in the current fiscal year.

The FBR spokesman Dr Hamid Ateeq Sarwar said reduction in taxes, especially on imports, could be introduced.

Meanwhile, in an official statement issued on Monday, Ministry of Finance said that the outcome of stabilisation policies, agriculture sector interventions, rigorous monitoring at federal/provincial levels and favourable weather will bring in better results in easing out inflation and sustain the economy towards growth and productivity in the coming days.

Adverse effects of pre-monsoon rains on wheat crop, disruption of supply chain of essential items due to harsh winters and thick fog, delay in harvest and arrival of crop in the market and lower production of vegetables, including tomato in Sindh, led to a higher food inflation but the change of weather and better supply of potatoes, tomatoes and onions should result in smooth supply and decrease price pressure, said the Finance Division in an official statement.

It noted that another factor contributing to higher inflation was the global price impact due to international commodity prices like palm oil increased by 43.9 percent, Soybean oil by 12.8 percent, crude oil by 16.6 percent, etc. in December 2019 over December 2018 which also pushed up the domestic prices. Downward trajectory in crude oil in the market will result in downward pattern in domestic prices in coming months.

https://www.thenews.com.pk/print/60...-seeks-rs300-bn-further-cut-in-revenue-target

 

[Longhorn]

Revenue is the wrong term for the money being extorted from people of Pakistan.
Term revenue hint's like some business has posted profit! While collecting tax is no business.
In history of world there has been many tyrants, who collected taxes same way as Imran Khan, but people only hated them.
Let's call it money extortion to be accurate!

Call it what you want as long as long as everyone pays their fair share.
No one likes paying taxes. Pakistanis are no different.

 

[Hakikat ve Hikmet]

According to the Western sources 80% of Pak economy is undocumented!!! It means a long way to go...

 

[maithil]

With inflation at 12%, this is not very encouraging figure.

IMF will agree to reduce tax collection target for different reasons.

 

[BATMAN]

Call it what you want as long as long as everyone pays their fair share.
No one likes paying taxes. Pakistanis are no different.

Do you know the purpose of tax collection?