Islamabad: Pakistan’s Federal Bureau of Revenue (FBR) Struggles to Meet Targets
Pakistan’s FBR has been consistently falling short of its fiscal year targets for the past 10 months, accumulating a staggering Rs 833 billion shortfall. This is happening as the government, led by Prime Minister Shehbaz Sharif, imposes record taxes and reduces refunds. Experts predict the upcoming budget will be challenging, with many targets to achieve.
The tax shortfall has exceeded the IMF’s limit by Rs 190 billion. The annual target of Rs 12.97 trillion set by the Pakistan government was revised by the IMF, acknowledging it was not achievable.
April’s tax shortfall added Rs 139 billion, exceeding the IMF’s guarantee of Rs 640 billion. Statistics show the FBR’s provisional tax collection of Rs 9.3 trillion is still short by Rs 833 billion, despite a 27% increase from the previous year.
Financial experts predict the current and upcoming fiscal years will be tough in terms of tax collection. The FBR Chairman stated there will be little space for tax relief in the budget, but they are reducing taxes on the salaried class.
Interestingly, the salaried class has been paying more taxes than the business community. By the end of March, the salaried class paid Rs 391 billion in taxes, 56% more than last year and 1420% higher than traders. The business community has protested, highlighting that the government has imposed taxes on milk products despite Pakistan being nutrition-deficient.
The Pakistan Dairy Association (PDA) demanded intervention from the National Assembly Standing Committee on Finance to reduce the 18% sales tax on packaged milk, which has increased prices by Rs 70 per litre.
Reference : https://zeenews.india.com/economy/pakistans-economic-woes-worsens-fbr-tax-shortfall-swells-to-rs-833-billion-2894435.html
