FBR sets new tax collection target at Rs1.29 trillion

ISLAMABAD: After facing over Rs. 100 billion shortfall in revenue, the Federal Board of Revenue (FBR) has set a new tax collection target – Rs. 1,295.99 billion, for the months of October to December of the following year. For the month of October, it is decided at Rs376.126 billion.

According to the sources, in order to collect as per the decided target, the income tax collection has set with direct taxes at Rs. 131.33 billion. Also, for the sales tax collection, in the case of indirect taxes has been set at Rs.149.58 billion.

Sources further revealed that the federal excise duty collection target has also decided around Rs. 25.124 billion whereas customs duties are at Rs. 70.10 billion.

Considering the tax collection target set for the months October to December, indirect tax collection, the income tax collection target has been set at Rs. 491.87 billion whereas the sales tax collection target is finalized at Rs. 499.89 billion along with Rs. 219.80 billion custom duties collection.

From July to September 2019, the interim shortfall of the Federal Board of Revenue was elevated to Rs. 139 billion. However, in September, the interim shortfall reached at Rs. 40 billion.

In the first quarter of the following fiscal year, the taxpayers had received Rs. 30 billion tax refunds. According to sources, the International Monetary Fund’s conditions were neither met nor did the first quarter’s tax collection targets set with IMF achieved. The Rs. 75 billion worth refunds to the taxpayers were also not released.

Sources further added there are chances to practice more steps to collect revenues if the exemption given by IMF is not met in the first economic examination. The deduction would be made in the payment that was released for the development projects, otherwise.

The reports have also revealed that the FBR has collected around Rs. 963 billion interim taxes during the first quarter which is estimated to be more than last year’s financial interim taxes. However, the number is far less than the target – Rs. 1.071 billion for the first quarter of the following year.

According to sources, the FBR has pressure to overcome this shortfall of the revenue in the coming months or IMF would opt for additional revenue.