According to sources, the Federal Board of Revenue (FBR) is struggling to meet its monthly revenue target of Rs. 980 billion. In the first quarter of FY25, the regulator reported a shortfall of Rs. 92 billion, and overall losses between July and October are projected to reach Rs. 180 billion.
To address the widening gap and strengthen enforcement of tax laws, the FBR has prepared an ordinance aimed at boosting revenue collection.
The regulator has also been directed to present a detailed report on the shortfall to the International Monetary Fund (IMF).
As part of IMF’s conditions, the sales tax exemption on tractors has already been reduced to 14%.
The proposed ordinance is also expected to withdraw an additional 4% sales tax exemption in a bid to raise collections.
