Qudsia Bano

In a remarkable achievement, the Federal Board of Revenue (FBR) has surpassed its revenue collection targets for the fourth consecutive month, reporting a substantial growth of 43% in domestic collections and an overall increase of 37% for the period spanning July to October 2023. The FBR collected a staggering Rs2,748 billion during this timeframe, exceeding the assigned target of Rs2,682 billion by Rs66 billion, reports WealthPK. The diligent efforts of FBR were particularly evident in October 2023, when collections reached an impressive Rs707 billion, compared to the Rs516 billion collected during the same period in 2022. Additionally, FBR issued refunds totalling Rs158 billion in the first four months of the year, demonstrating a commitment to a balanced and fair tax system. This marked an increase from Rs113 billion refunded in the corresponding period of the previous year. Notably, the total number of returns filed up to October 31, 2023, for the tax year 2023, stood at approximately 2.9 million.

This represents a notable surge of 330,000 filings compared to the same period in the previous year when 2.57 million returns were filed. Commenting on this impressive performance, Dr Ahmed Faraz, an economist at the Pakistan Institute of Development Economics, said, "The FBR's consistent surpassing of revenue targets is a positive indicator for the economic health of the country. The substantial growth in both domestic and overall collections reflects a robust and resilient fiscal strategy." "This achievement not only signifies effective tax administration but also suggests a buoyant economy, with businesses thriving and individuals contributing to the tax base." "Moreover, the increase in the number of filed returns is encouraging, indicating improved tax compliance among taxpayers. The issuance of refunds in a timely manner further enhances the credibility and fairness of the taxation system, fostering a positive environment for both businesses and individuals," he noted.

"In the coming months, sustaining this growth trajectory will be crucial. The FBR's dedication to achieving assigned targets is commendable, and if this trend continues, it can contribute significantly to the country's economic stability and development," he said. Faraz said that the surpassing of revenue targets by such a significant margin was likely to have cascading positive effects on the country's fiscal policies. "The additional funds can be channeled into critical sectors such as infrastructure, healthcare, and education, fostering sustainable development. This financial success also enhances the government's capacity to address economic challenges and implement strategic initiatives." He said as Pakistan navigates through economic complexities, the FBR's exemplary performance sets a benchmark for responsible financial governance and lays the groundwork for a prosperous future.

Credit: INP-WealthPk