Rs31.3bn sales tax refunds to the traders & exporters were paid by PML-N government hours before the end of its five-year term. The government has left behind huge deficits in revenue collection.
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Federal Board of Revenue (FBR) at Ministry of Finance’s directive will prepare the list of applicants who will be given a refund. The list has to be completed in a limited time period, and the full amount will be sent to every taxpayer in 24 hours time.
The refund total amount reached Rs 100 billion till May 31st in the first 11 months. It went up by 85% from Rs54bn paid out in the same period last year.
Though business experts appreciated the government’s decision, they said that the time has been “synchronized with the upcoming election and is a political move.”
The business leaders felt that the government is pursuing traders through this decision. An increase of 15% was seen in revenue collection in last 11 months of the present fiscal year. It reached from Rs2854bn last year during the same period to Rs3274bn during the July-May 2018 period.
FBR already revised the downfall of budget revenue target from Rs4013bn to Rs3935bn. A shortfall of Rs78bn was seen. If FBR wants to achieve even the revised target it will have to collect all the remaining amount that is Rs661bn this month, in June 2018.
The provincial revenue collection on monthly basis is Rs351bn in May 2018 excluding the collection for book adjustments. In the corresponding month of last fiscal year, the revenue collection was Rs346bn. A minor increase of 1.44% was seen in May 2018 compared to the same month last fiscal year.