ISLAMABAD: The federal government is facing a massive tax shortfall of Rs606 billion, with the Federal Board of Revenue (FBR) falling short of its target for the July-February period of this fiscal year.
The shortfall has triggered concern within the government and the FBR, as the tax collection has not met the ambitious target set by the International Monetary Fund (IMF).
The FBR collected Rs7.342 trillion by the end of February, showing an impressive 28% growth compared to the previous year. However, this was still Rs606 billion short of the target of Rs7.95 trillion. The missed targets are putting increasing pressure on the government, which had hoped to achieve Rs13 trillion in total tax collection for the fiscal year.
Compounding the issue, the FBR is also facing internal turmoil following the controversial removal of a senior Customs officer, the Collector Customs Islamabad. The officer was transferred after questioning an unusual and late-night request from the finance minister’s office. She had been instructed to fix the national flag on a borrowed vehicle for the finance minister's trip to Peshawar, which she questioned due to the lateness of the order. The officer's transfer has led to criticism from Customs officers and sparked outrage within the Customs Officers Association.
The FBR’s tax collection performance has been inconsistent, with the government missing its monthly targets for the seventh consecutive month. February’s collection of Rs845 billion fell short of the target by Rs138 billion. Despite this, the FBR exceeded its income tax target by Rs279 billion but missed the targets for sales tax, excise duty, and customs duty.
The government’s reliance on increased taxes to meet its goals, including new taxes on consumables and the salaried class, has sparked frustration and dissatisfaction among officers and the general public alike.
