ISLAMABAD: The Federal Board of Revenue (FBR) has been tasked with collecting Rs2.58 trillion revenue during the last quarter (April-June) to meet the desired annual tax collection target of Rs7.64 trillion.
According to top official sources, the FBR has devised a strategy to achieve this target, which includes generating tax-increased demands, gradually increasing imports and increasing income tax collection.
However, achieving this target may be difficult, given inflationary pressures, devaluation of the exchange rate and imposition of over Rs800 billion in taxes by the government during the ongoing financial year.
While the government had recently imposed additional taxes of Rs170 billion in the latest mini-budget, it has not helped improve the FBR’s dwindling tax collection. An FBR official said that the mini-budget had been expected, and the influential sector had front-loaded their tax obligations, but it was hoped that revenue collection would pick up in May and June 2023.
The FBR’s strategy includes materialising a tax demand of over Rs110 billion against Rs50 billion in the previous financial year, not imposing regulatory duty on certain luxury items to boost imports, and making efforts to bridge the shortfall in import-related taxes through improved income and sales tax collection.
Independent tax analysts, however, believe that the FBR may not be able to achieve its upward revised tax collection target of Rs7.64 trillion, and a shortfall of Rs150 billion to Rs200 billion is expected to occur due to a slowdown in economic activities.
In a recent meeting, Federal Finance Minister Ishaq Dar had expressed his satisfaction with the FBR’s performance and extended his full support to it.
The minister had further emphasised the need for the FBR team to enhance its efforts to achieve the true tax potential in the country.
