FBR’s tax collection gap widens by Rs295bn; needs Rs1,698bn in three months to meet target

FBR’s tax collection gap widens by Rs295bn; needs Rs1,698bn in three months to meet target

ISLAMABAD: The deficit in tax collection has soared by 295 billion in first nine month of current fiscal year making it an impossible task for Federal Board of Revenue (FBR) to achieve Rs4,398 billion target for current fiscal year.

The revenue collection for July – March 2019 was stood at Rs2,700 billion as against the target of Rs2,995 billion.

The widening of tax gap posed a serious trouble for the government in meeting development expenditures and curtailing fiscal deficit.

The State Bank of Pakistan (SBP) has already projected the fiscal deficit at 6 to 7 percent as against actual target of 4.9 percent of the GDP for the fiscal year 2018/2019.

According to provisional collection the FBR collected Rs358 billion. The collection target for the month of March was Rs432 billion.

FBR sources said that the collection of advance tax witnessed steep fall due to shrinking profitability of the corporate sector.

The corporate sector pay advance income tax in March on the assumption of their income in the three quarters.

As per the latest development in the revenue collection the FBR will required Rs1,698 billion during next three months in order to achieve the revenue collection target of Rs4,398 billion.

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