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FBR Faces Rs 90 Billion Tax Shortfall in First Quarter
The Federal Board of Revenue (FBR) has missed its tax target by Rs 90 billion in the first quarter, collecting only Rs 1464 billion against a target of Rs 2654 billion. This shortfall is a cause for concern, as it may impact the country’s economic stability.
Challenges Affect Tax Collection
Continuous protests and roadblocks in July-August affected economic activities, resulting in a tax shortfall. The change in Federal Board of Revenue chairman at the start of the new fiscal year also impacted tax collection. These challenges highlight the need for a stable and efficient tax collection system.
September Target
The tax collection target for September is Rs 1190 billion. Failure to achieve this target may lead to the IMF demanding a mini-budget. The Federal Board of Revenue must take all necessary steps to ensure that this target is met.
Encouraging Tax Collection Rate
Despite challenges, the tax collection rate of 27% in July-August is encouraging, Federal Board of Revenue officials said. This shows that the FBR is making efforts to improve tax collection.
July Tax Collection
Earlier, FBR collected Rs 659.2 billion in July against a target of Rs 656 billion. Refunds amounting to Rs 77.9 billion were also issued. This is a positive sign, as it shows that the FBR is committed to providing refunds to taxpayers.
Tax Breakdown
Rs 300.2 billion was collected under Income Tax, Rs 307.9 billion under Sales Tax, Rs 37.4 billion under Federal Excise Duty, and Rs 91.7 billion under Customs Duty. This breakdown shows that the FBR is collecting taxes from various sources.
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