ISLAMABAD: Federal Board of Revenue (FBR) on Monday issued details of tax collection by the month of May during the ongoing fiscal year 2019-20,.
According to details, the FBR collections in terms of taxes and duties witnessed a 7.7 percent increase by the month of May as compared to the same period of the previous fiscal year.
Sharing details, the tax collection body said that it collected an amount of Rs 3,518 billion by the month of May this fiscal year in terms of duties and taxes as compared to Rs3,266 billion collected during the previous year.
It further said the FBR collected Rs227 billion in terms of taxes and duties during the month of May 2020.
It is pertinent to mention here that Adviser to Prime Minister on Finance Abdul Hafeez Shaikh said on May 14 that they would be fortunate if Rs 3900 billion is collected in terms of taxes during the ongoing fiscal year owing to coronavirus situation faced by the country.
Addressing a seminar on COVID-19 impacts on economy, Hafeez Shaikh said that it was difficult for them to ascertain the losses economy suffered due to coronavirus pandemic.
“We expected a growth rate of 3 percent before virus hit the country,” he said adding that at that time they witnessed a 16 percent increase in tax collection from previous year.
He said that they expected a further increase in tax collection during the last three months of the fiscal year- April to June-however it was ruined due to COVID-19 pandemic.
“We witnessed a 40 percent decline in exports in April due to coronavirus while the remittances are also expected to go down due to increase in global unemployment,” the finance adviser said.
Hafeez Shaikh said that before the pandemic, they expected to achieve a tax target of upto Rs 4800 billion, however, in current scenario, they would be fortunate if they achieve a target of Rs 3900 billion.