The Federal Board of Revenue (FBR) Islamabad on Thursday announced that it had collected Rs300 billion in July 2020, exceeding Rs243 billion of Rs243 billion.
According to the July 2020 revenue collection report, Inland Revenue exceeded the target by Rs52 billion, while Fors Wing exceeded the target by Rs5 billion despite an Rs25 billion grant being awarded. According to FBR, in order to offset the negative impact of the Covid-19 economy on businesses, an unprecedented amount of Rs15 billion was deducted in mid-July 2020, compared to a return of Rs7 billion in July 2019.
Sales tax refunds are issued under an independent and self-regulatory system called FASTER, which stipulates refunds to retailers within 72 hours for the first time as enacted by the government in July 2020.
According to official figures, the total tax revenue collected in July 2020 was more than Rs42 million, which is six percent higher than those obtained in July 2019. However, it has grown less than one percent of the total sales over time.
The high increase in FBR revenue is mainly due to better oversight and improved administrative control despite the hostile economic conditions created by Covid-19, where the country remained largely in a closed state.