FBR facing Rs389b shortfall against revised target of Rs4150b

ByMehtab Haider

ISLAMABAD: The FBR has so far collected Rs3,761 billion in shape of all taxes including Rs25 billion through tax amnesty scheme against downward revised collection target of Rs4,150 billion for outgoing fiscal year 2018-19 ending on June 30.

It indicates that so far the FBR has been witnessing whopping revenue shortfall of Rs389 billion for achieving its downward revised target of Rs4,150 billion on June 30, 2019. Some top level changes are also on the cards within the tax collection machinery next month.

The govt had initially assigned the FBR target of Rs4,398 billion which was revised downward to Rs4,150 keeping in view massive shortfall. If one compared with original target of Rs4,398 billion, the FBR faced shortfall of Rs637 billion in the outgoing fiscal year. Against the revised target of Rs4,150 billion, the FBR has been facing revenue shortfall of Rs389. Today (June 30) is the last day and the FBR is making its last ditch efforts to touch the last fiscal year collection figure of Rs3,842 billion for which the FBR will have to collect Rs81 billion on last day (Sunday) of outgoing fiscal year 2018-19. Although FBR Chairman Shahbar Zaidi has ruled out possibility of granting any extension in amnesty scheme as he stated categorically on Saturday that there would be no extension in tax amnesty scheme.

When this scribe contacted FBR Chairman Shahbar Zaidi, he said, “No extension in amnesty scheme is on the cards and there is very good response on it so far.

However, the sources said that the government would have to promulgate fresh ordinance if it wanted to grant extension in the amnesty scheme and decision to this effect would be made on Sunday night (today). With approval of finance bill 2019-20 from Parliament, the amnesty scheme has become law of the land with expiry date of June 30, 2019. One top official of the FBR told The News on Saturday that the FBR did not get any advances in order to inflate its revenue collection figures and in next fiscal year there would be clean slate having no liabilities on account of last year collection at all. They said that the amnesty data was showing that there were around 35,000 declaration on the system but almost half of the people were not depositing declared amount along with submitted declaration. It indicates that half of the tax payment would come into kitty within this ongoing fiscal year while remaining would be in next fiscal year with imposition of surcharges in the range of 10 to 40 percent.