FBR misses monthly target by 1.3%

Sustained performance in income tax collection, coupled with a better show in previous months, has enabled the Federal Board of Revenue to achieve its seven-month target of Rs5.12 trillion. However, for the first time in this fiscal year, the monthly target was missed by Rs9 billion or 1.3%. Under an arrangement with the International Monetary Fund (IMF), a shortfall of more than 1% may necessitate a mini-budget. The tax authorities attribute the monthly collection shortfall to the interim finance minister’s drive to restructure the FBR, which they claim shifted focus away from the core goal of meeting tax collection targets. Provisional collection figures reveal that the FBR has collected Rs5.15 trillion so far, marking a Rs1.15 trillion or 31% increase over the same period in the previous fiscal year. According to the understanding with the IMF, the FBR must inform the global lender monthly about progress in revenue collection. In case of a revenue shortfall, the FBR is required to implement back-up measures.