ISLAMABAD: The Federal Board of Revenue recorded six percent lower growth in revenue during March 2014 as compared to March 2013.
As per details, the revenue collection rose by 17 percent in March 2014 compared to the corresponding period last year. However the rise pales in comparison to the 22 percent rise in collections in March 2013 compared to the corresponding period of a year before.
The monthly comparison between the two fiscal years revealed that 6pc lower growth during March 2014 compared to March 2013. IMF mission chief Jeffery Franks had expressed concern during a press briefing at the conclusion of third review of the Extended Fund Facility (EFF) on poor performance of revenue collection. He added that the FBR tax collection increase was below expectations in fourth quarter and led to downward Fund projection to Rs 2,275 billion.
In April 2014, the FBR witnessed a growth of 8 percent against the corresponding period last year. The FBR collected Rs152.480 billion in April 2013 as compared to Rs145.795 billion in April 2012, reflecting a growth of 4.6 percent. The provincial revenue collection during the first 10 months of current fiscal year revealed that the FBR provisionally collected Rs1,746 billion during July-April (2013-14) against Rs1,509 billion in the corresponding period of 2012-13, reflecting an increase of Rs237 billion.
The comparison further revealed that the FBR collected Rs1,352 billion during July-March 2012-13 as compared to Rs1,280 billion collected in the corresponding period last year. Thus, the FBR generated Rs1,352 billion at the end of third quarter of 2012-13 and attained lower growth of 5.6 percent over previous year. At that time FBR said that one of the major reasons of this sluggish growth was lower economic activity and anaemic investment. Slow implementation of tax reforms, a host of tax exemptions and leakages in the tax system were other factors behind lower revenue collection with minimum growth of 5.6 percent. The FBR has collected Rs1,575 billion as provisional collection during the first nine months (July-March) of 2013-14 showing a growth of 16.4 percent over the corresponding period of last year.
In the past, the FBR had attained a significant growth of about 27 percent in revenue receipts during July-March, 2011-2012 despite low growth in GDP and gas & power outages. In budget 2013-14, the government projected 26-27 percent growth in monthly revenue collections and it achieved this target only in January 2014. In February 2014, tax collection stood at Rs163.2 billion against Rs140.2 billion in the corresponding period of 2013, showing an increase of 16.4 percent. The tax collection target of Rs2,475 billion for 2013-14 was revised downward to Rs 2,345 billion and further slashed to Rs2,275 billion due to low collection of customs duty and federal excise duty (FED).
