ISLAMABAD: The Fe\u00ad\u00add\u00ad\u00aderal Board of Revenue missed its revenue collection target by nearly Rs386 billion in the first half of the current fiscal year, as a decline in im\u00ad\u00adp\u00adorts and lower-than-expe\u00adcted inflation impacted tax receipts.<\/p>\n
According to provisi\u00adon\u00ad\u00adal figures released on Tu\u00ad\u00adesday, FBR collected Rs5.623 trillion between July and December aga\u00adinst the target of Rs6.009tr. However, the collection is 26pc higher compared to the year-ago figure of Rs4.466tr.<\/p>\n
The shortfall is largely attributed to reduced tax collection from imports due to a slowdown in tra\u00adde, sluggish manufacturing growth and unexpectedly low inflation, which has dropped to single digits in recent months.<\/p>\n
December alone saw a gap of Rs47bn, with Rs1.326tr collected aga\u00adinst a target of Rs1.373tr. However, this represen\u00adt\u00ad\u00aded a 35pc increase compa\u00adred to Rs984bn collected in December last year.<\/p>\n
Slowdown in imports, low inflation hamper tax collection in July-December<\/p>\n
The government\u2019s ove\u00adrly ambitious revenue target of Rs12.913tr for FY25, a 40pc increase from FY24, is now backfiring. The refusal to cut expenses and the unexpected hike in the revenue target make it seem nearly impossible to achieve.<\/p>\n
The FBR paid Rs273bn in refunds to taxpayers in the first half of the FY25, up from Rs234bn in the same period last year, representing a 16.66pc incr\u00ade\u00adase. The FBR paid Rs70bn in refunds in December compared to Rs38bn in the same month last year, a reduction of 84pc.<\/p>\n
The government belie\u00adves that the additional revenue of Rs3.659tr in FY25 will be achieved from three main factors. It hopes that GDP growth of 3pc, large-scale manufacturing expanding at 3.5pc with inflation at 12.9pc, and imports growing at 16.9pc will collectively yield an additional Rs1.863tr in revenue in FY25.<\/p>\n
Independent economi\u00ads\u00ad\u00adts estimate that real revenue collection in FY25 will be approximately Rs12tr.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD: The Fe\u00ad\u00add\u00ad\u00aderal Board of Revenue missed its revenue collection target by nearly Rs386 billion in the first half of the current fiscal year, as a decline in im\u00ad\u00adp\u00adorts and lower-than-expe\u00adcted inflation impacted tax receipts. According to provisi\u00adon\u00ad\u00adal figures released on Tu\u00ad\u00adesday, FBR collected Rs5.623 trillion between July and December aga\u00adinst the target of Rs6.009tr. […]<\/p>\n","protected":false},"author":1,"featured_media":4320,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4319","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news"],"_links":{"self":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts\/4319","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4319"}],"version-history":[{"count":1,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts\/4319\/revisions"}],"predecessor-version":[{"id":4321,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/posts\/4319\/revisions\/4321"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=\/wp\/v2\/media\/4320"}],"wp:attachment":[{"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/weeklyyoung.pk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}