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FBR Faces Revenue Shortfall of Rs 188 Billion in First Four Months of Fiscal Year
The FBR reported a revenue shortfall of Rs 188 billion in the first four months of the fiscal year, collecting only Rs 3442 billion against a target of Rs 3631 billion, with Rs 169 billion refunded.
ND
by News Desk
2024-11-01
FBR Faces Revenue Shortfall of Rs 188 Billion in First Four Months of Fiscal Year

The Federal Board of Revenue (FBR) has recorded a significant revenue shortfall of Rs 188.8 billion in the initial four months of the ongoing fiscal year, underscoring challenges in meeting tax collection targets. According to sources within the FBR, the agency was expected to amass Rs 3631.4 billion but managed to collect Rs 3442.6 billion from July through October.

 

FBR sources disclosed that a total of Rs 169 billion in refunds was issued during these four months, impacting the overall revenue figures. For October alone, the revenue target was set at Rs 980 billion, but actual collections reached only Rs 879 billion, resulting in a monthly shortfall of Rs 101 billion. Additionally, Rs 22.6 billion was refunded in October, further affecting the net collection.

 

The shortfall raises concerns as FBR continues efforts to expand the tax base and boost revenues to meet its annual target. With substantial fiscal pressures on Pakistan’s economy, this gap in collections may challenge the government’s ability to fund essential programs and services without borrowing.

 

Tax experts suggest that the FBR may need to revisit strategies to optimize collections and broaden the tax base, particularly amid rising economic pressures domestically and globally. The revenue gap also highlights the importance of enhancing compliance measures and supporting economic activities that can contribute to long-term fiscal growth.

 

With five months remaining in the fiscal year, the FBR faces a formidable task in aligning collections with targets. However, consistent focus on streamlining tax procedures and increasing compliance could provide a path to minimizing future shortfalls.

 
Tagged:

FBR

PakistanEconomy

FiscalPolicy

TaxCollection

RevenueShortfall
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