ISLAMABAD: Federal Board of Revenue (FBR) has to collect around Rs2,500 billion during last four months (March – June) 2020 in order to achieve revenue collection target of Rs5,238 billion set for the fiscal year 2019/2020.
The FBR provisionally collected Rs2,714 billion during first eight months (July – February) 2019/2020 as compared with Rs2,331 billion collected in the corresponding months of the last fiscal year, showing around 16.5 percent growth.
However, so far collection of the FBR is not sufficient for reaching the collection target for current fiscal year. The average monthly collection target during first eight months of the current fiscal year is Rs339.25 billion. While the revenue is required to collect revenue at monthly average of Rs625 billion, which appears to be an uphill task for the tax machinery.
The FBR collected Rs1,495 billion in the last four months (March – June) 2018/2019. In case maintain the growth pace of 16.5 percent then the FBR may able to collect Rs1741.67 billion during the last four months of current fiscal year.
Therefore, the FBR may able to reach total collection of Rs4,456 billion during the current fiscal year. Therefore, the estimated shortfall in revenue collection may be hit at Rs782 billion for the current fiscal year.
The FBR was initially given Rs5,550 billion revenue collection target for the fiscal year 2019/2020. However, the authorities were not optimistic to meet the target, therefore, in consultation with the IMF the revenue collection target was downgraded to Rs5,238 billion.
The tax authorities are estimating collection of around Rs2.45 trillion by June 30, 2020.
In recent document on budgetary achievement in first six months of current fiscal year, the finance ministry admitted the revenue collection target was historically high and challenging. The finance ministry also pointed out lower collection due to economic slowdown and contraction in consumption.
