Islamabad: The Federal Board of Revenue (FBR) did not meet its tax collection target for last financial year 2016-17.
While speaking to the Senate Standing Committee on Finance, FBR Chairman Tariq Pasha said due to tax concessions introduced by the government in last year’s federal budget had cost the regulator a whopping Rs169.7b on its revenues, which contributed to it missing its tax collection target.
FBR had set a tax collection target of Rs3.621t for FY 2016-17 but was able to muster only Rs3.362t in actuality till 30th of June, said Pasha. A shortfall of Rs259b in revenues was suffered as a result by FBR during last FY 2016-17.
While informing the parliamentary panel, Pasha said that the govts decision not to pass on the increase of petroleum prices to consumers had resulted in a revenue shortfall of Rs111b for the tax machinery.
He added that Rs11.5b textile package approved by the ex-PM Nawaz Sharif, Rs16.5b relief in reducing sales on fertilizer, Rs2.7b relief on pesticides and Rs28b relief of zero-rating for five export sectors had also contributed to this shortfall.
Pasha apprised the parliamentary panel that its final revenue receipts of Rs3.362t was 8pc higher than last FY 2015-16. Sales tax collection for FY 2016-17 stood at Rs1.332t, recording a mere 2.3pc increase from last year.
As per FBR Chairman, direct tax collection increased by 10.4pc for FY 2016-17 reaching Rs1.344t.
