Islamabad, September 9, 2024 – The Federal Board of Revenue (FBR) is aiming to achieve a revenue collection target of Rs 1.16 trillion in September 2024, as part of an urgent effort to meet its monthly and quarterly tax goals.
This collection drive is seen as critical to avoid the introduction of a mini-budget, which would require the government to raise taxes through a supplementary finance bill.
According to FBR sources, falling short of this target could trigger a series of fiscal measures, including tax rate hikes, to ensure the country remains on track with its fiscal commitments. Pakistan is currently striving to secure a $7 billion loan under the International Monetary Fund (IMF) program, making it essential to meet revenue collection targets. A senior official in the FBR, speaking on condition of anonymity, warned that failure to meet the September target could force the government to take corrective actions. “In case of a revenue shortfall, we will need to introduce a supplementary finance bill to raise taxes and meet collection targets,” the official said.
The FBR has been assigned an ambitious revenue collection goal of Rs 12.97 trillion for the fiscal year 2024-25. However, the initial two months of the fiscal year have seen the revenue collection fall short of expectations. Between July and August, the FBR collected Rs 1,456 billion in net revenue, against a target of Rs 1,554 billion, resulting in a shortfall of Rs 98 billion.
Given the significant gap, the FBR is intensifying its efforts to reach the September collection target. The FBR chairman is personally monitoring the revenue collection performance on a daily basis to ensure that every avenue of collection is explored. Member Inland Revenue Operations, Badshah Khan Wazir, has issued special instructions to field formations, urging them to take all necessary measures to enhance revenue collection and avoid missing the September target.
The FBR is closely tracking key revenue streams such as withholding tax collection, input-adjustment audits, and post-refund audits. Additionally, the department is monitoring the impact of the new tax measures introduced under the Finance Act of 2024, which were aimed at boosting tax revenues.
With Pakistan’s economic stability hanging in the balance, the FBR’s ability to meet its revenue targets will be crucial to avoiding a mini-budget and securing the IMF’s loan program.
