ISLAMABAD: The FBR is heading towards a massive revenue shortfall in achieving its downward-revised monthly tax collection target for May 2025, with a margin of Rs200 billion by provisional figures.
The FBR has fetched revenue collection of Rs0.91 trillion in the outgoing month against the desired tax collection target of Rs1.11 trillion for May 2025.
When contacted, FBR’s high-ups claimed that the tax collection might go up on the last day, i.e., May 30, 2025, as the FBR’s designated offices and commercial bank branches would remain open to collect a few billion more for the national kitty.
The FBR’s tax collection stood at Rs10.2 trillion in the first eleven months (July-May) of the current fiscal year, making it impossible for touching the downward revised tax collection target of Rs12.33 trillion till June 30, 2025 in line with the agreement struck with the IMF.
The FBR’s tax collection target was envisaged at Rs12.97 trillion approved by the Parliament on eve of the last budget for 2024-25 but the IMF allowed downward revision to Rs12.33 trillion keeping in view shortfall at time of parleys for conclusion of first review.
It was envisaged that there would be collection of Rs 190 billion from stuck up cases in the superior courts but it could not be achieved so it became one of the reasons in achieving the fixed tax target for the outgoing month in May 2025.
The FBR requires to collect a ballooning figure of Rs2.129 trillion in June 2025 in order to display its downward revised annual tax collection target of Rs12.33 trillion on its board. The independent tax experts believed that the FBR might be facing a massive revenue shortfall in achieving the revised tax collection in the outgoing fiscal year. The FBR has provisionally collected Rs0.9 trillion in May 2025 so far against the desired target of Rs1.11 trillion, witnessing a shortfall of Rs0.2 trillion alone in this outgoing month.
The FBR high-ups say that the few billions more might come into tax net because certain branches of the banks and FBR offices would remain open on Saturday (May 31).
It seems harder for the FBR to touch Rs12 trillion mark in the outgoing fiscal year because the tax machinery will have to fetch revenue collection of Rs1.8 trillion in June 2025 for touching even this mark.
