The Federal Board of Revenue has failed to achieve its tax collection target during the first nine months of the current fiscal as Rs277 billion shortfall has been recorded during a period of July-March, FBR sources said on Saturday. The FBR collected Rs5,156 billion against the target of Rs5,433 billion during a period of July-March. During the month of March, the FBR could collect Rs660 billion taxes against the target of Rs727 billion, thus registering a shortfall of Rs67 billion.

It is pertinent to mention here that the government has introduced mini-budget in mid-Feb to generate extra revenue on the direction of IMF but the revenue board has failed to achieve its target.  Sources said that before giving final shape to the tax statistics, government might increase taxes to make up for the shortfall.

Pakistan assured the International Monetary Fund that after removing cap from the local currency, the government would be able to collect additional Rs180 billion. But the shortfall in tax revenue will attract more pressure from the global lender. As per the understanding with the IMF, in case of a shortfall in tax collection, the government will make adjustments in expenses or levy more taxes to make up for the gap.

Credit : Independent News Pakistan-INP