FBR Collects Rs. 605 Billion in May 2023

Despite the economic slowdown and a downward revision of the GDP growth rate, the Federal Board of Revenue (FBR) collected Rs. 605 billion gross revenue in May 2023, exceeding its target of Rs. 621 billion. Net revenue after refunds amounted to Rs. 572 billion.

Domestic income tax collection increased by 57% to Rs. 205 billion, while domestic sales tax collection grew by 28% to Rs. 100 billion. Federal Excise Duty (FED) collection rose by 32% to Rs. 41 billion.

Imports declined by 37% in US$ terms in May 2023 compared to May 2022. This led to a 18% dip in Customs duty collection and an 11% decline in overall tax collection at the import stage. However, FBR's overall growth was registered at 16% compared to the previous year.

The FBR's performance is commendable in light of the economic challenges. The authority has been able to collect more revenue despite the slowdown in the economy. This is a positive sign for the country's fiscal health.

However, there are concerns about where this revenue is going. The poor are still poor, and many taxpayers complain that they have to bribe officials to get their tax refunds and exemption certificates which is true and confirmed and also this is an industry practice. There is a need for greater transparency and accountability in the use of public funds.

The government should take steps to ensure that the revenue collected by the FBR is used to benefit all Pakistanis, not just the wealthy and powerful. This includes investing in education, healthcare, and infrastructure, and providing social safety nets for the poor. The government should also make it easier for taxpayers to get their refunds without having to bribe officials.