FBR says didn’t ask IMF for revision in revenue target

ISLAMABAD: The Federal Board of Revenue has not requested the International Monetary Fund (IMF) for downward revision in the annual revenue target, its spokesperson Dr Hamid Attique told Pakistan Today on Wednesday.

It was reported the FBR team had informed the IMF team the premier tax collection agency has made a realistic assessment of possible revenue collection and estimated that it could fetch maximum revenue of Rs4,450 billion by the end of current fiscal year against the revised downward target of Rs5,238 billion.

Moreover, it has also been reported that the government is likely to impose Rs200 billion additional taxation measures through a mini-budget.

The FBR would be facing a mammoth revenue shortfall of Rs1,100 billion with the collection of Rs4,450bn compared to initially envisaged target of Rs5,550bn.

The possible shortfall is projected at Rs788 billion if potential revenue collection of Rs4,450 billion is to be compared with the revised target of Rs5,238 billion.

It was also reported that the FBR took taxation measures to the tune of Rs730 billion for materializing its desired target of Rs5,550 billion on the occasion of last budget. However, now the top management argues that of Rs730 billion, the bureau has envisaged collection of Rs100 billion through administrative efforts as it is likely to raise Rs35 billion through Customs Duty and Rs65 billion through IR taxes.

The Sales Tax and FED are yielding results but in case of income tax, the salary-related taxation and withholding of telecoms are providing revenues, and some other measures would start yielding results along with returns of the tax year 2020.

It isn’t yet known if the IMF team has agreed to fix the revised downward target because it will all depend upon the overall fiscal deficit. There is special focus on the primary target of 0.6 per cent of GDP for the current fiscal year.

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