The Federal Board of Revenue (FBR) has collected Rs373.8 billion during the July-September period of the current fiscal year showing an overall increase of 27.4 per cent as compared to tax collection of Rs293.4 billion during the same period of last fiscal year.
According to the net provisional figures released by FBR on Tuesday, the collection of domestic taxes recorded an increase of 29.3 per cent to Rs331.3 billion during 1Q2011 as compared to collection of Rs256.3 billion collected during the same period last fiscal year. Domestic taxes include direct taxes, sales tax and the Federal Excise Duty (FED).
During the first quarter direct taxes collection increased by 27.7 per cent to Rs122.1 billion, sales tax collection increased by 34.9 per cent to Rs180.4 billion and FED increased by 6.7 per cent to Rs28.7 billion as compared to Rs95.7 billion, 133.7 billion and Rs26.9 billion of 1Q2010 respectively. Although the sales tax rate was reduced from 17 per cent to 16 per cent, still the growth rate in sales tax collection has been recorded.
The custom duty collection also witnessed an increase of 14.4 per cent as Rs42.5 billion were collected as compared to Rs37.1 billion collected during 1Q2010. The tax collection increased by 24.6 per cent to Rs145.07 billion during September 2011 as compared to Rs116.4 billion collected during the same month last fiscal year.
FBR has a target to collect Rs1952 billion during the FY2011 and this tax target has been divided into Inland Revenue of Rs1737 billion and customs duty of Rs215 billion. With strict compliance and enforcement, the tax authorities are hopeful that they would manage collection of the target. FBR has also changed its strategy and has started fixing monthly and quarterly tax collection for its field formations that have increased pressure on them to deliver.
FBR collects Rs373.8 billion tax during first quarter of FY11
