IMF tweaks quarterly tax collection target

ISLAMABAD: Without changing the tax collection target of Rs9,415 billion for the current fiscal year, the International Monetary Fund (IMF) has made adjustments in monthly tax collection targets of the last three months (April-June) period.

With the participation of around 10 interested parties mainly belonging to international firms for digitisation of the Federal Board of Revenue (FBR), the government is set to select one consultant in order to introduce end-to-end utilisation of technology for broadening of tax base. “We expect the high-powered committee to meet this week to finalise hiring of a consultant for digitisation of the FBR,” said an official.

On the tax collection target, the major target has now been envisaged for June 2024 where the FBR will have to fetch tax collection of over Rs1,245 billion. The monthly target for April 2024 has been fixed at Rs704 billion while the target for May 2024 is fixed at Rs745 billion for the current fiscal year. The FBR had materialised collection of Rs6,710 billion in the first nine months (July-March) period of the current fiscal against the agreed target of Rs6,700 billion with the IMF. However, the FBR requires Rs2,705 billion in the last and fourth quarter (April-June) period in order to achieve the assigned target of Rs9,415 billion by June 30, 2024. In the wake of slowdown in imports, it would be difficult for the FBR to achieve the desired target, however, higher inflationary pressures so far helped the FBR in jacking up revenues and displaying growth of 30 percent in the first nine months of the current fiscal.