FBR exceeds May tax collection target by 8%, PM Khan congratulates for ‘Historical Milestone’ of collecting ₨. 4000 billion

This signifies a growth of about 17% over the collection of ₨. 3.549 trillion during the same period last year.

Meeting at FBR takes stock of issuance of tax refundsThe FBR (Federal Board of Revenue) exceeded its collection target by 7.82%, accumulating ₨. 386 billion in May.

This is the third-highest collection in the second half of the current fiscal year (FY21).

The net collection for May was ₨. 386 billion against a target of ₨. 358 billion, which is a surge of ₨. 28 billion.

Meanwhile, the revenue collection witnessed a growth of 69% as compared to the collection of ₨. 229 billion in May 2020.

The FBR has accumulated a net revenue of ₨. 4.167 trillion during the July 2020-May 2021 period (11MFY21), which has surpassed the target of ₨. 3.994 trillion by more than ₨. 173 billion or 4.33%.

This signifies a growth of about 17% over the collection of ₨. 3.549 trillion during the same period last year.

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It is pertinent to note that this is the third consecutive month in which the FBR’s revenue collection exceeded the projected monthly target notwithstanding the ongoing Covid-19 pandemic.

On the 29th of May, the Prime Minister, Imran Khan, had lauded the tax regulator’s struggles for crossing tax collection of more than ₨. 4,000 billion in a fiscal year for the first time in the country’s history.

In a post on Twitter, the premier said that the tax collections touched ₨. 4,143 billion during 11MFY21.

“During July-May our collections touched ₨. 4143 billion and still counting – 18% higher than the same period last year,” he said.

The premier added that this reflects the broad-based economic revival driven by governmental policies.

It is pertinent to state that FBR has so far collected ₨. 4.17 trillion in taxes.

Considering this, the tax regulator will have to raise ₨. 790 billion at a growth rate of 71% in the last month of the current fiscal year to reach the annual target.

Predicting the shortfall, the IMF (International Monetary Fund) has downward changed its forecasts for the FBR collection to nearly ₨. 4.7 trillion for the current fiscal year.

What are your views on this? Share with us in the comments below.

  • Great. one month still to go to reach 4.5 Trillion. Next year target above 5 trillion Inshallah.

  • Laborious reform in FBR which has been initiated by PTI govt has started to bear fruit.
    Unstoppable PTI & its policies.

    • We have started but it’s an organisation brought up to steal. Pay the officers well, but expect a professional organisation. How can it be right that many still pay little or no tax.

  • We should be looking for 6tr in the medium and and 10tr in medium to long term. If we don’t we will remain in the debt trap. Despite this figures,The FBR is corrupt and inefficient. It looks for the low hanging fruit and this can be seen by the pitiful figures for Income tax collection.

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