The Federal Board of Revenue (FBR) has met its revenue target in FY-2019-20.
According to the released information, FBR has collected revenue of Rs3,989 billion in FY 2019-20 which is Rs82 billion more than the revised revenue target of Rs3,907 billion set for the outgoing Fiscal Year. The net revenue collected in FY 2018-19 was Rs3,826 billion.
The gross revenue collected in the FY 2018-19 was Rs3,895 billion which has surpassed Rs4 trillion in FY 2019-20 for the first time in the history making the total gross revenue as Rs4,123 billion.
Despite outbreak of coronavirus, there was growth of 5 percent in Income Tax, 9 percent in Sales Tax, 7 percent in Excise Duty and negative growth of 8.4 percent in Customs Duty. In FY 2019-20, FBR has issued refunds of Rs235 billion which were Rs69 billion in FY 2018-19 showing an increase of 340 percent.
The decrease in Customs Duty was due to deliberate reduction of imports to overcome Current Account Deficit. Due to reduction in imports, an impact of Rs700 billion shortages in revenue collection occurred, which resulted in setting a new revised target of Rs4,803 billion from Rs5,505 billion in December, 2019.
There was a robust growth of 27 percent in domestic taxes till February, 2020 and it was highly expected that revised revenue target of Rs4,803 billion would be achieved. However, due to continuous lockdown in the wake of Coronavirus outbreak, the revenue target was further revised to Rs3,907 billion.
FBR has further clarified that the current revenue collection figures are provisional data as the revenue collection is expected to further increase after inclusion of collection from book adjustments, Form 32A, Federal Treasury Receipts and offline branches of National Banks.