Government fails to achieve tax target for first 5 months
The federal government has failed to achieve the tax target for the first five months of the current fiscal year, and a tax deficit of Rs356 billion has been recorded during the five months.
The government had set a tax target of Rs4.64 trillion for July-November, out of which Rs4.28 trillion has been collected.
Tax officials say that another Rs10 billion in tax is likely to be collected on Saturday, while a tax deficit of Rs166 billion has been revealed in November.
To achieve the tax target of Rs13 trillion, the FBR will have to increase tax collections by 40 percent, but the FBR is still unable to achieve this pace.
According to the data, the FBR has not been able to achieve its targets related to sales tax, federal excise duty and customs duties during July-November,
While it has collected more than the income tax target, the income tax target in the month of November has not been met.
The FBR has collected Rs 1.983 trillion in income tax during the five months, which is 27 percent (Rs 415 billion) more than the same period of the previous fiscal year, while this tax is also Rs 190 billion more than the target.
Sales tax was collected at Rs 1.546 trillion, which is 23 percent more than the previous year, but Rs 310 billion less than the target.
Federal excise duty collected at Rs 277 billion, which is 25 percent more than the previous fiscal year, but Rs 100 billion less than the target.
Customs duties collected at Rs 473 billion, which is 9 percent more than the previous fiscal year, while Rs 137 billion less than the target.
On a monthly basis, the FBR has collected Rs 376 billion in income tax in November, which is Rs 9 billion less than the target.
Sales tax has been collected at Rs 311 billion, which is Rs 133 billion less than the target.
Federal excise duty collected at Rs 63 billion, which is Rs 18 billion less than the target, and customs duty collected at Rs 96 billion, which is Rs 42 billion less than the target.
It should be noted that this month, the government has approved a special package of Rs 32.5 billion to address the inefficiencies of the FBR,
which includes giving 1300 cc cars to grade 17 and 18 officers and giving four additional salaries to all officers.
It should be remembered that in the informal talks with the IMF in the past few days, the IMF has expressed serious concern over the non-achievement of tax targets,
The IMF has decided to wait until December.
Based on December’s tax collection, the IMF may ask Pakistan to bring a mini-budget. In the mini-budget, more taxes may be imposed on fertilizers, imports, contractors, and the income of professionals.
