FBR falls short of its January target by Rs80bn

ISLAMABAD: The Federal Board of Revenue (FBR) fell short of its tax collection target of January by Rs. 80 billion as it could gather Rs. 872 billion against the target of Rs. 956 billion, ARY News reported citing sources.

In the seven months of this fiscal year from July to January, the FBR collected Rs. 6,496 billion in taxes, missing its target of Rs. 6,964 billion by over Rs. 465 billion.

Despite the shortfall, the FBR reported a 29% monthly growth in tax revenue and a 26% annual growth in the seven months from July to January, the sources added.

The FBR also met its Tax-to-GDP ratio target as per the International Monetary Fund’s (IMF) conditions.

In December, the FBR collected Rs 1328 billion against the set amount of Rs 1370 billion with a shortfall of Rs 42 billion.

Earlier it was reported that the Large Taxpayer Office (LTO) Karachi set a new record in tax collection, reporting a 20 percent increase in tax receipts compared to the same period last year.

Reports suggest that, during the first five months of the fiscal year 2024-25, LTO Karachi collected Rs1,110 billion in taxes, a significant rise from Rs924 billion in the corresponding period of the previous fiscal year.

Earlier on Thursday, the FBR halted the purchase of over 1000 new vehicles for its officers, following the directives of the Senate Standing Committee on Finance

Chairman FBR Rashid Langrial in a statement said that the purchase of vehicles will remain frozen until the finance committee is satisfied. The committee has summoned the Public Procurement Regulatory Authority (PPRA) to clarify the rules governing the purchase.

The FBR had decided to purchase 1200cc vehicles for its officers on January 13, 2025, despite facing revenue shortfall. The decision was met with criticism, and the board had planned to pay Rs. 3 billion upfront and the remaining amount in installments.