Govt cuts annual tax target by Rs1.1 trillion after revenue shortfall

Pakistan has revised its annual revenue target downward for a second time for the fiscal year after falling short of collection goals, 24NewsHD TV reported on Saturday. 

According to official figures and sources familiar with ongoing discussions with the International Monetary Fund (IMF), the Federal Board of Revenue (FBR) has reduced its annual tax collection target to Rs13.005 trillion from a previously revised goal of Rs13.979 trillion.

The target was originally set at Rs14.131 trillion, meaning it has now been cut by Rs1.126 trillion.

Sources said the FBR recorded a shortfall of Rs866 billion against the previously revised target during the first 11 months of the fiscal year.

Following the latest adjustment, however, the gap has narrowed to around Rs25 billion, bringing the authority closer to achieving the updated goal.

Data for the July-May period showed that income tax remained the largest source of revenue, contributing Rs5.602 trillion.

Sales tax collections stood at Rs4.215 trillion, while revenue from Federal Excise Duty exceeded Rs744 billion.

Customs duties generated approximately Rs1.220 trillion during the same period.

The FBR also issued tax refunds worth Rs550 billion in the first 11 months of the fiscal year, part of efforts to clear pending claims and improve liquidity for businesses.

In May alone, the tax authority collected Rs966 billion.

Income tax contributed Rs459 billion, while sales tax receipts exceeded Rs386 billion.

Federal Excise Duty generated Rs 72 billion, and customs duties brought in nearly Rs 100 billion during the month.

More than Rs50 billion in refunds were issued in May, according to the figures.

The revised revenue target is thought to feature in ongoing consultations between Pakistan and the International Monetary Fund.