Pakistan's FBR falls short of November 2024 tax target
Collection sees unprecedented fall, of over PKR 150 billion
Pakistan's tax department, the Federal Board of Revenue (FBR), has faced an unprecedented shortfall in its tax collection for Nov. 2024, missing the monthly target by over PKR 150 billion.
Sources told Nukta that the tax department, by Friday evening, had collected only around PKR 768 billion against the monthly target of PKR 1,003 billion.
They said the revenue agency can add PKR 40 billion in revenue (around up to PKR 810 billion) till Nov. 2024
The collection of PKR 768 billion includes PKR 324 billion in income tax against the target of PKR 376 billion; PKR 326 billion in sales tax against the target of PKR 409 billion; PKR 60 billion in federal excise against the target of PKR 81 billion; and PKR 93 billion customs duty against the target of PKR 138 billion
This is the third month in the current fiscal year when tax authorities failed to achieve their monthly tax target.
It is pertinent to note that the FBR had collected PKR 996 billion in July 2024 against the target of PKR 985 billion, PKR 782 billion in Aug. 2024 against the monthly target of PKR 898 billion, PKR 1,106 bn in Sept. 2024 against the target of PKR 1,098 bn and PKR 878 billion tax revenue against the tax revenue target of PKR 980 billion.
The overall revenue shortfall will surge to around PKR 400 billion in five months.
The government has repeatedly announced that no mini-budget would be introduced to generate additional revenue in the second quarter of the current fiscal year.
The FBR has implemented short-term measures to reduce the anticipated shortfall of over PKR 300 billion in the second quarter (Oct-Dec) 2024-25. Field formations have started to issue notices to high-net-worth individuals.
In the first phase, the FBR has issued notices to 5,000 non-filers, with an estimated tax liability of PKR 7 billion.
Meanwhile, the Intelligence and Investigation (I&I) Inland Revenue (IR) wing of FBR has also been registering FIRs against individuals or companies involved in fake & flying invoices.
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