ISLAMABAD: The Federal Board of Revenue (FBR) needs to collect Rs372 billion to meet the ‘thrice revised’ collection target for the ongoing fiscal year (FY20).
According to sources, the tax department has collected Rs3,536 billion in taxes during the first 11 months (July 2019-May 2020) of FY20. The collection in May 2020 was recorded at Rs227 billion, as against the revised target of Rs250 billion.
In order to meet the revised revenue target of Rs3,908 billion for FY20, the tax authority needs Rs372 billion in the last month (June).
It may be noted that FBR’s tax collection target had been revised downwards for three times in the current fiscal year, from the original target Rs5.55 trillion. It was first revised to Rs5,238 billion following the International Monetary Fund’s review of Pakistan’s Extended Fund Facility.
The tax target was further revised to Rs4,803 billion in February this year when the Pakistani authorities had apprised the IMF of impediments in tax collection.
The IMF team had recently revised the target by another Rs895 billion in wake of the coronavirus pandemic, as economic activities had been halted around the country and the FBR was unable to collect the required amount.
Sources said that the IMF team was unhappy with the performance of tax officials. On the other hand, sources reveled the government may also reshuffle the tax department in the ongoing month as the incumbent chairperson wants her own team at important positions.
Sources said that the government has set the tax target at Rs5,101 billion for the next fiscal year. However, officials are requesting the government for a downward revision in this, as it is tough for them to achieve the target amid coronavirus.