FBR faces shortfall of Rs1,070 billion during FY2024-25

The Federal Board of Revenue (FBR) has faced a shortfall of Rs1,070 billion during fiscal year 2024-25, reported 24NewsHD TV channel on Tuesday.

The Federal Board of Revenue collected Rs11,730 billion tax revenue during fiscal year 2024-25.

The FBR was assigned revised the revenue collection target of Rs12,900 billion for the fiscal year 2024-25, after negotiations with the International Monetary Fund (IMF).

The FBR has collected Rs10,213 billion during July-May (2024-25) period against the target of Rs11,240 billion, reflecting a shortfall of Rs 1027 billion.

The shortfall has increased from Rs703 billion during July-March (2024-25) to Rs 821 billion during July-April (2024-25). Now the shortfall has been further increased to Rs1027 billion during the July-May (2024-25) period.

Key factors behind the shortfall included lower tax receipts from imports, subdued manufacturing activity, and a sharp decline in inflation, which dropped to a record 0.3pc in recent months.

In the FY25 budget, the government introduced Rs1.761trillion worth of new revenue measures. Yet, revenue collection still lagged behind the revised target.

The FBR issued Rs493 billion in refunds and rebates to taxpayers during the year, up from Rs480 billion a year earlier. Refunds in June stood at Rs33 billion, compared to Rs27 billion in June 2024.

During July-June, income tax collection reached Rs5.781trillion, falling short by Rs42bn against the target of Rs5.823 trillion.

This reflects a 28pc increase from Rs4.531trillion collected last year.

Reporter: Waqas Azeem

Sales tax collection amounted to Rs3.90 trillion, missing the Rs3.969trillion target by Rs69 billion, though it marked a 26pc increase over last year’s Rs3.089 trillion.

Customs duty collection stood at Rs1.284 trillion, falling short of the Rs1.350 trillion target by Rs66 billion, though it grew by 16pc compared to Rs1.104 trillion last year.

The Federal Excise Duty (FED) collection surpassed its target, reaching Rs767 billion against the projected Rs759 billion — a growth of 33pc from last year’s Rs577 billion.

Reporter Waqas Azeem