Tax revenues in first six months face shortfall of Rs386bn

Islamabad: The Federal Board of Revenue (FBR) faced a tax shortfall of Rs386 billion during the first half of the current fiscal year (July-December) as revenue collection was Rs5623 billion against the desired target of Rs6,009 billion.

Finance Advisor Khurram Shahzad said that the FBR’s tax collection for December was Rs1,328 billion, achieving 97 percent of the monthly target. He said that tax collection cases in December were also the highest in a month.

The International Monetary Fund (IMF) had given a target of Rs6,009 billion by the end of December 2024 and the FBR achieved a net collection of Rs5,623 billion during the first six months of the current fiscal year.

The amount of advance collection by the FBR is yet to be determined as it was estimated that the FBR would face a shortfall of over Rs400 billion in the first half of the current fiscal year.

FBR paid refunds worth Rs272 billion in the first six months of the current fiscal year. After reaching an agreement with banks, the FBR collected Rs72 billion on their profits during the current fiscal year after issuing an ordinance to fix a rate of 44 percent on their profits.