The Federal Board of Revenue (FBR) must collect Rs5,624 billion in the remaining four months of the fiscal year 2024-25 to achieve its annual target of Rs12,970 billion. With revenue collections reaching Rs7,346 billion in the first eight months, the tax authority faces a shortfall of Rs601 billion.
In February alone, the FBR provisionally collected Rs850 billion, falling Rs133 billion short of its Rs983 billion target. Officials project that the overall shortfall for the fiscal year could exceed Rs600 billion, raising concerns over meeting revenue commitments.
To bridge the gap, the FBR is intensifying enforcement, audits, and legal recoveries from pending court cases amounting to Rs2.7 trillion. The tax authority also proposed reducing tax rates in the beverage, tobacco, and real estate sectors to stimulate transactions and generate an additional Rs100 billion in the April-June period. However, the IMF has rejected these proposals.
In case the revenue gap persists, the FBR and IMF have agreed on contingency tax measures expected to generate Rs216 billion annually. These include raising sales tax on textiles and leather, imposing a Rs5 per kg federal excise duty on sugar, and increasing advance income tax on imports, supplies, and services.
With only four months left in the fiscal year, the FBR faces mounting pressure to achieve its target, with IMF-backed revenue measures likely to play a key role in bridging the shortfall.
