Islamabad, Jan 30: The Federal Board of Revenue (FBR) is facing a significant challenge in meeting its revenue collection target for January 2025. According to sources, the FBR has so far collected Rs. 800 billion against the ambitious target of Rs. 950 billion for the month, leaving the tax collection department with a daunting task of gathering Rs. 150 billion in the remaining days of January.
Despite this gap, FBR officials remain optimistic about achieving the revenue collection goals for the current fiscal year (FY25), citing expectations of increased tax collection as economic activity picks up in the coming months. Sources indicated that the FBR is not considering the introduction of a mini-budget to address the shortfall, as officials are confident that the upcoming months will see a boost in tax revenues.
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However, the FBR’s task has been complicated by the substantial revenue shortfall experienced in the first half of the current fiscal year. For the first six months, the FBR faced a massive shortfall of Rs. 386 billion, which has placed significant pressure on the department to meet its targets. As a result, the actual revenue collection during this period was much lower than the assigned target of Rs. 6,009 billion.
For the full fiscal year FY25, the government has set an ambitious tax collection target of Rs. 12,913 billion, marking a 40 percent increase compared to the previous fiscal year (FY24). Achieving this target is crucial for the government’s fiscal plans, but the ongoing challenges in revenue collection raise concerns about the feasibility of meeting these lofty goals.
As the FBR navigates this difficult terrain, stakeholders are closely monitoring the situation to see whether the department can make up for the shortfall in the coming months and achieve the fiscal targets set for the year.
