FBR Misses Tax Collection Target by Rs. 98 Billion in Jul-Aug:

FBR Misses Tax Collection Target by Rs. 98 Billion in Jul-Aug

Pakistan's Federal Board of Revenue (FBR)  reported a significant tax revenue shortfall of Rs98 billion  for the first two months (July-August) of the 2024-25 fiscal year. While the FBR had set a target of Rs1,554 billion, it managed to collect only Rs1,456 billion in net revenue. Despite this deficit, the FBR achieved some positive growth in domestic tax revenue, including a 36% increase in domestic income tax and a 40% increase in domestic sales tax. A decline in import volumes, especially of high-tariff items such as automobiles and consumer goods, contributed to the deficit. However, the FBR is optimistic about achieving its target for the first quarter and expects economic activity and imports to pick up in September, supported by government interventions and reforms.