FBR sets ambitious Rs14,305bn tax target for upcoming fiscal year
Business
IMF has also insisted Pakistan must remain committed to achieving primary balance target
ISLAMABAD (Mudassar Ali Rana) – Two days after the start of virtual talks with the International Monetary Fund regarding the upcoming fiscal budget, the Federal Board of Revenue (FBR) on Friday set a tax target of Rs14,305 billion for the upcoming fiscal year.
According to a document, due to the FBR’s growth rate and inflation, tax revenue is expected to remain at Rs13,275 billion, while over Rs1,030 billion can be collected through enforcement and policy measures.
Sources say that tax targets were finalised during virtual negotiations between the IMF and Pakistan’s economic team.
According to IMF recommendations, Rs600 billion could be collected through enforcement actions in the next fiscal year.
Additionally, the IMF has demanded documentation of the tobacco, beverages, and real estate sectors, highlighting the need for a transformation plan, real-time production data, and improvements in documentation processes.
The IMF has also insisted that Pakistan must remain committed to achieving the primary balance target during the IMF program and has called for the speedy resolution of tax cases pending in courts.
FBR misses tax target by Rs831bn
It is worth noting that the FBR missed its collection target in the first 10 months of the current fiscal year by nearly Rs831 billion.
Read more: FBR misses tax target faces shortfall of Rs468bn in first seven months
The huge gap is believed to be due to decline in the overall import volume and inflation dropping below expectations.
According to the data, the FBR collected Rs9.299 trillion in July-April FY25 against the budgetary target of Rs10.130tr.
