The Federal Board of Revenue (FBR) is facing a Rs75 billion shortfall in meeting the downward revised annual tax collection target of Rs7,200 billion for the current fiscal year.
The FBR collected Rs7,125 billion against the revised tax collection target of Rs7,200 billion, resulting in a Rs75 billion net revenue shortfall for fiscal year 2022-2023.
Following the release of the mini-budget in February 2023, the FBR set an annual tax collection target of Rs7,640 billion for the current fiscal year.
The government levied an additional Rs160 billion in taxes by raising the GST rate from 17% to 18%, imposing a higher GST rate of 25% on luxury commodities, and increasing the Federal Excise Duty (FED) on cigarettes by 154%.
However, because the FBR did not receive additional income in the last four months, the revenue collection target for the end of June 2023 was reduced from Rs7,640 billion to Rs7,200 billion.
Intriguingly, Minister of Finance and Revenues Ishaq Dar tweeted about the highest-ever tax collection for the current fiscal year.
“For the first time in the country’s history, the FBR has collected Rs7,000 billion in taxes until June 26, 2023,” the FBR said, adding that revenue collection would increase further until June 30, 2023.
