FBR beats Rs2.68tr tax target

Despite a sluggish economic growth and import compression, the Federal Board of Revenue (FBR) surpassed its five-month tax collection target of nearly Rs2.7 trillion on the back of enforcement measures and steady income tax growth. However, the income tax return filing still remained a big challenge for the revenue board during July-November of current fiscal year. “The FBR continues to demonstrate excellent performance in revenue collection for the fifth consecutive month of current financial year and has exceeded both the five-month target of Rs2.68 trillion as well as monthly target of Rs537 billion,” said a statement issued by the FBR. It added that both the targets had been achieved despite import compression and zero sales tax on petroleum products. The economy is projected to grow only 2% but inflation is hovering around 27%, playing a key role in enhanced tax collection after income tax receipts. As per provisional figures, Rs2.69 trillion was collected against Rs2.33 trillion in the corresponding period of previous year, an increase of over 15.3%, according to the FBR. But the growth was below the prevailing 27% inflation, which the FBR needs to address.