FBR fails to achieve revenue target of Rs5,460bn

Islamabad: The Federal Board of Revenue (FBR) has failed to achieve nine months revenue target of Rs5,460 billion.

Sources said that FBR has collected Rs 5156 billion in the first nine months against the target of Rs 5460 billion, indicating a shortfall of over Rs 300 billion from July to March. FBR has collected Rs 663 billion in March 2023 against the target of Rs 727 billion, indicating a shortfall of 64 billion in March.

Overall, FBR has now collected Rs 2484 billion tax in the last quarter to meet the yearly revised revenue target of Rs 7640 billion.

The government imposed Rs 170 billion revenue measures to meet the financing gap as instructed by the International Monetary Fund (IMF).

Additionally, on Friday also increased petroleum development levy on petrol and diesel to Rs 50 per liter to fulfill IMF’s demand. 

Sources also said that FBR’s  field offices are knowingly sending notices to recover Super Tax to companies that do not have any taxable income and are already suffering taxable losses for the year.

Rather tax authorities are deceitfully computing the imputable income based on the amounts separately and clearly mentioned as  subject to minimum tax which confirms the malafide intentions of Tax Authorities, sources added.

Currently the corporate sector is paying over 50% tax to the government of Pakistan. The collection has a breakdown of 35% of Individual and Association of Person’s (AOP) , 4% additional Super Tax for tax year 2022, 29% in corporate profits, 15% in dividends, 17% GST along with additional up to 4% additional Super Tax for Tax Year 2022.

Sources said that such unfair and frivolous demands from FBR is  adding fuel to the fire in quite disturbing and deteriorating economic environment and is only adding to the mounting worries of the corporate sector. 

The corporate community, according to internal sources, believes that this time and resources should have been put in the right direction in expanding the tax base, setting up a strong control environment by strengthening and enhancing the data based automated controls and overcoming the tax frauds.