FBR falls short of revenue target by Rs48 billion

ISLAMABAD: The Federal Board of Revenue (FBR) has fallen short of its revenue target with a shortfall of over Rs48 billion in the first ten months of the current fiscal year.

According to sources, the FBR has fallen short of over Rs48 billion despite efforts to ramp up collections. The revenue department only managed to scrap together Rs7,366 billion against the target amount of Rs7,414 billion.

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Sources within the FBR revealed that the revenue deficit persisted in April 2024, with a shortfall of Rs53 billion. The tax target for April alone was set at Rs707 billion, but the FBR could only muster Rs654 billion in collections.

The government department is facing several issues in meeting revenue targets amid economic fluctuations, 29 per cent inflation and constantly changing tax policies.

Previously, the FBR directed relevant departments to block cellular numbers of more than 500,000 non-tax filers. The action is part of the revenue department’s efforts to enforce tax compliance in the country.

The FBR in particular aimed to target citizens liable to file income tax returns for the previous year. In spite of constant notices, only 4.5 million people filed their annual returns for 2023, compared to 5.9 million filers in the previous year.

Read more: FBR to block mobile SIM cards of non-filers

The FBR’s decision to block mobile phone numbers of half a million Pakistanis is the latest effort in its campaign to encourage tax compliance. The revenue department stated its mandatory on citizens earning Rs600,000 annually or owning significant assets to file tax returns under the “Income Tax Ordinance 2001”.

The government ordered all network providing companies to comply with its decision. The Pakistan Telecommunication Authority (PTA) is overseeing the enforcement.