Pakistan likely to miss Oct revenue target by PKR 80 billion

Pakistan's tax collection authority — the Federal Board of Revenue (FBR) — is likely to miss October tax revenue target by PKR 80 billion.

Sources informedNukta that the FBR is likely to collect around PKR 900 billion tax revenue against a target of PKR 980 billion. This will be the second month in the current fiscal year that tax authorities will miss their monthly target.

Documents shared with Nukta showed the FBR collected PKR 996 billion in July against a target of PKR 985 billion. This includes PKR 608 billion income tax, PKR 332 billion sales tax, and PKR 55 billion Federal Excise Duty.

Meanwhile, FBR collected PKR 782 billion in August against a target of PKR 898 billion. This includes PKR 349 billion income tax, PKR 335 billion sales tax, PKR 58 billion federal excise, and PKR 93 billion customs duty.

Furthermore, FBR managed to collect PKR 1,106 billion in September against a target of PKR 1,098 billion. However, it missed the quarterly target by PKR 90 billion.

Pakistan's prime minister recently approved the transformation plan of FBR, which includes enforcement measures such as abolishing non-filer category and restructuring non-registered business entities.

Sources said that the government will soon promulgate an ordinance regarding enforcement measures against non-filers and nil-filers to meet the tax collection target of PKR 12,915 billion for fiscal year 2024-25 (FY25).

It is pertinent to note that the Pakistani government has also agreed with the International Monetary Fund (IMF) that it will take seven new taxation measures during FY25 in case revenue collection falls short of the projected target by 1%.