FBR briefs IMF on revenue shortfall, unveils strategy for Rs230 billion gap

ISLAMABAD: On Monday, the Federal Board of Revenue (FBR) updated the International Monetary Fund (IMF) about its revenue collection for fiscal year 2024-25, the Tajir Dost Scheme, and strategies to address a projected shortfall of Rs230 billion in the second quarter (October-December).

Sources revealed that FBR officials, including the chairman, discussed short-term and long-term measures to mitigate the anticipated shortfall during a meeting with the IMF team.

These meetings, focused on revenue enforcement and broadening the tax base, also covered retailer registration and reforms.

The IMF led by Nathan Porter is currently in Pakistan to review the Extended Fund Facility (EFF) programme and will meet the finance minister. The government has already surpassed IMF targets for trader tax inclusion collecting Rs10 billion in the first quarter which includes additional taxes from unregistered shopkeepers.

The FBR has shifted its focus to registering larger retailers based on data analysis rather than physical surveys. They are moving away from a fixed tax per shop policy and instead targeting tax evasion through credible data.

According to Business Recorder, in October, the FBR collected Rs877 billion, falling short of the Rs980 billion target. Overall, the FBR has collected Rs3,440 billion in the first four months missing Rs3,636 billion target by Rs196 billion.

Adjustments to economic assumptions, including GDP growth and imports, have impacted tax projections, prompting the FBR to finalise measures to address the remaining shortfall.

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