ISLAMABAD -The tax collection in the country during first 6 months of current fiscal year has reached to Rs2,083 billion which was 16.3 per cent higher than last year and it was the highest growth rate since 2015-16. The Federal Board of Revenue has made great efforts to attain this growth despite rather subdued economic activity, says a press release issued by FBR here Saturday. The original target of 2,367 b was revised to 2,197 in view of import compression in first quarter. The trend has continued for the second quarter. This compression of over $5 billion has on one hand improved current account situation but on the other hand has adversely effected the usual revenue resources of the government.

An estimated loss of Rs56 billion of taxes is incurred on every billion dollar of import compression. FBR has redoubled its efforts on domestic side and has managed to shift its tax dependence on import taxes from 56% to a little above 40% 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, it added.