Floods cause Rs50 billion revenue shortfall for FBR

ISLAMABAD (Mudasar Ali Rana) - The Federal Board of Revenue (FBR) is facing a shortfall of nearly Rs50 billion in tax collections due to the recent flood crisis that has severely disrupted business activity across the country.

According to FBR sources, direct tax losses alone have crossed Rs20 billion, while the overall estimated loss stands at Rs34 billion. From Sialkot to Bahawalpur, tax collections at regional offices have dropped by more than half. Major cities in Punjab, including Lahore, Gujranwala, Multan, Sahiwal, and Sargodha, have recorded a significant decline in revenue collection across nine field offices.

During August, the FBR managed to collect Rs895 billion against the set target of Rs950 billion. As a result, the tax authority now faces the daunting task of collecting Rs1,350 billion in September to meet its monthly target.

For July and August combined, the FBR had set a target of Rs1,700 billion, but current figures suggest the total collection may remain restricted to Rs1,650 billion.

Additionally, sources revealed that heavy rains in Karachi and disruptions in port operations have reduced goods declaration filings, further impacting customs duty collection.

Experts fear that this revenue gap could lead to tough questions and increased pressure from the International Monetary Fund (IMF) during the upcoming economic review negotiations.