The Federal Board of Revenue (FBR) is under mounting pressure to achieve its November tax collection target of Rs1.003 trillion as the revenue stood at over Rs550 billion as of November 25, 2024, leaving a daunting Rs450 billion gap to meet the target.Â
BR reported, citing sources, that the FBR is relying on short-term measures to address a projected shortfall exceeding Rs230 billion for the second quarter (October-December) of the current fiscal year.
To bridge the gap, notices will be issued to 5,000 high-net-worth non-filers, with an estimated recovery of Rs 7 billion. Tracking of these non-filers will be managed through a dedicated FBR dashboard.
In October, the FBR collected Rs877 billion against a target of Rs980 billion, reflecting a shortfall of Rs103 billion. For the first four months of FY2024-25, total collections reached Rs3.44 trillion, falling short of the Rs3.636 trillion target by Rs196 billion.
Economic factors such as revised GDP growth, import activity, inflation, and changes in large-scale manufacturing have affected the initial assumptions underpinning the tax targets. To address these challenges, the FBR has outlined both immediate and long-term strategies.
Contingency measures include increasing federal excise duty (FED) on sugary drinks and raising withholding tax rates on imported machinery, raw materials, contracts, and services. These adjustments are expected to generate an additional Rs10.8 billion per month, or Rs97.2 billion, over the remaining three quarters of the fiscal year.
