ISLAMABAD: Customs duty collection increased to Rs476 billion, higher by Rs142 billion or 43%. It was Rs61 billion more than the target.
The Federal Board of Revenue has exceeded the first-half year target by Rs282 billion but lost the winning streak by missing the monthly goal for the first time this year due to poor domestic sales tax and income tax collection despite sluggish release of refunds.
The new challenge that FBR faced in December indicates the difficulties ahead after the annual current target of Rs5.829 trillion is set to go up to Rs6.179 trillion under a condition laid down by the International Monetary Fund.
Still, the FBR remains the main beneficiary of increased imports and nosediving rupee that significantly contributed to the collection of indirect taxes during first half of the current fiscal year (July-December).
Official statistics showed that while sales tax at the import stage increased 75%, the domestic sales tax collection fell 6%. The domestic sales tax collection dipped despite the fact that the nominal gross domestic product growth rate amounted to 16%.
According to the provisional data, the FBR collected net revenue of Rs2.915 trillion during July-December of current fiscal year (2021-22). It showed a growth of 32.5% compared to Rs2.2 trillion during the same period of previous year. Overall, the FBR gave Rs148 billion in refunds against Rs112 billion in the same period of the previous year.
The FBR has exceeded the first half year target by Rs282 billion. However, out of the excess collection, the contribution of income tax was just Rs5 billion and the rest came from sales tax at the import stage and customs duty, showed the provisional figures.
