Tax growth of 16.3% achieved in first half of 2019-20: FBR

ISLAMABAD, Pakistan: The Federal Board of Revenue (FBR) has said that the tax collection in first six months of the ongoing Fiscal Year 2019-20 is Rs 2,083 billion which is 16.3 percent higher than the last year.

In a press release on Saturday, the FBR said that it is the highest growth rate since the Fiscal Year 2015-16, and it has made great efforts to attain this growth despite rather subdued economic activity.

The FBR said that the original target of Rs 2,367 billion was revised to Rs 2,197 billion in view of the import compression in the first quarter, and the trend has continued for the second quarter.

It said that this compression of over $5 billion has on one hand improved the current account situation but on the other hand has adversely affected the usual revenue resources of the government. It said that an estimated loss of Rs 56 billion of taxes is incurred on every billion dollar of import compression.

The FBR further said that it has redoubled its efforts on domestic side and has managed to shift its tax dependence on import taxes from 56 percent to a little above 40 percent this year.

With expected upturn of economic activity in last six months and a likely stabilization of imports, it is expected that FBR is going to collect an unprecedented amount of taxes this year without disrupting and distorting economic activity.