FBR faces Rs10b revenue shortfall in first month

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ISLAMABAD - Despite introducing new tax measure to achieve the sky-high target of tax collection, Federal Board of Revenue (FBR) is lagged behind and facing around Rs10 billion shortfall in tax collection in first month of fiscal year 2013-14.

Pakistan Muslim League (Nawaz) led federal government had introduced innovative measure in federal budget to broaden the tax net and to achieve Rs2,475 billion tax collection target of ongoing financial year. The government had introduced new heavy tax measures to broaden the tax net and to collect additional Rs 205 billion during ongoing financial year. But, the performance of federal revenue board appear in first month has raised serious question towards achieving the towering tax collection target.

Sources in the FBR told that the federal revenue body had collected around Rs 130 billion against the target of Rs 140 billion for the month of July thus facing a shortfall of around Rs 10 billion, which is considered as a bad omen towards tax collection by the prime tax collection body. They said during July past, the FBR had collected Rs 117 billion.

“If the revenue body goes with such pace in tax collection then it would face the music by the end and as a result to this the government would not be able to meet its ends that it had attached with above said ambitious revenue collection target, “ a senior economist at Pakistan Institute Development Economics (PIDE) said, adding, “the concerned top revenue officials should wake up from the deep slumber and take stringent action against the lethargic attitude of staff assigned with a task to ensure revenue collection target.”

He further said that tax collection target of outgoing July was set at Rs140 billion but so far the FBR had collected around Rs130 billion. In this way, the federal revenue body (FBR) failed to achieve the revenue collection target for the first month of the current financial year. It seems if the government did not warn the body over this failure then it was expected that like current shortfall of around Rs10 billion in July would go further up and up in coming months and would be multiplied. And, by the end of the current fiscal year soaring shortfall would surge to a level that would bore more cash starvation like situation for the government.

Courtesy:  Nation

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