FBR Struggles to Meet April Tax Target Amid Reshuffle and Shortfall

Following a significant reshuffle and the designation of several officers as OSD, the Federal Board of Revenue (FBR) is grappling with the daunting task of meeting the targeted tax collection for April 2024. As of now, tax collection has amounted to Rs550 billion, falling short of the Rs707 billion target by a staggering Rs157 billion for the ongoing month.

The recent focus within the FBR has shifted towards addressing the repercussions of the abrupt reshuffling of top officers within the Inland Revenue Service (IRS) and Customs group. Officer associations convened a meeting with the FBR chairman to express their apprehensions regarding these changes.

As April 30, 2024 approaches, anticipation mounts regarding the extent to which the FBR will bridge the existing shortfall before the month’s end.

Subsequent to obtaining consent from the International Monetary Fund (IMF), the FBR’s primary focus has shifted to the readjustment of targets for the last quarter (April-June), necessitating a tax collection of over Rs1.242 trillion by June 2024.

The monthly target for April 2024 was set at Rs707 billion, while the target for May 2024 stands at Rs745 billion for the ongoing fiscal year.

During the initial nine-month period (July-March) of the current fiscal year, the FBR achieved a collection of Rs6.71 trillion against an agreed target of Rs6.7 trillion with the IMF. However, in the final quarter (April-June), the FBR must secure Rs2.705 trillion to attain the assigned target of Rs9.415 trillion by June 30, 2024.

Also read: Pakistan’s Economy Loses Rs800 Billion Due to Intellectual Property Infringements