The Federal Board of Revenue (FBR) reported an impressive performance, exceeding its projected revenue target for August 2023. Demonstrating financial prowess, the board’s achievement showcases a higher collection than anticipated, strengthening the economic position for the current fiscal year.
With a targeted revenue collection of Rs649 billion for August, the FBR’s actual collection stood at a remarkable Rs669 billion. This accomplishment translates to a robust growth of 35 percent, as detailed in the press release disseminated on Thursday.
Such triumphs are particularly noteworthy considering the challenges faced. FBR’s commitment to its fiscal goals remains unwavering, underscored by its allocation of Rs 42 billion for refunds in August 2023, a considerable increase from the Rs 38 billion disbursed in August of the previous year.
For the fiscal year’s opening duo of months, the FBR’s coffers swelled with collections totalling Rs1,207 billion, successfully eclipsing the set target of Rs1,183 billion.
Segment-Wise Revenue Growth
Diving deeper into the numbers, there has been a significant uptick in collections under different tax categories. Income tax collections surged by 41 percent, amounting to Rs488 billion, in contrast to Rs347 billion collected in the same duration.
The realm of sales tax also witnessed a substantial growth, recording a 16 percent increase with a collection summing up to Rs473 billion. This leap is commendable, especially when compared to the Rs407 billion amassed in July and August 2022.
Federal Excise Duty (FED) collections were no different, showcasing an astounding 57 percent rise, totaling nearly Rs80 billion. Furthermore, the Inland Revenue taxes sector recorded a cumulative growth of 29 percent.
Imports Impacting Customs Collections
However, not all segments experienced the same momentum. Import compressions have influenced the customs duties’ collection rate. While there was still growth of 10 percent, the actual collection amounted to Rs166 billion, a slight uptick from the Rs151 billion in July and August 2022.