FBR fails to meet IMF's target despite additional tax collection

The Federal Board of Revenue (FBR) has failed to achieve the targeted revenue estimated by the International Monetary Fund (IMF), indicating the imposition of strict measures by the government to bridge a gap of below Rs100 billion in the first quarter of fiscal year 2025.

The FBR collected Rs2.56 trillion for July to September of the ongoing FY25 against the targeted revenue of Rs2.65 trillion with a Rs96 billion shortfall. Still, the gap was far lower than the FBR’s assessment of Rs170 billion to Rs200 billion.

However, in September, the board exceeded the monthly target of Rs1.098 billion by just Rs2 billion, which led shortfall to decline from Rs98 billion to Rs96 billion.

The measure that averted the non-filer from buying property, vehicles, and bank account transactions assisted the FBR in collecting additional income tax payments of Rs46 billion and annual returns.

Despite the failure to achieve the target, the first quarter recorded a 25% increase in revenue generation over the last year, at Rs2.04 trillion.

The FBR paid Rs146 billion in refunds to the taxpayers in the first quarter, up from the Rs129 billion of the corresponding year, showing an increase of 13.17 percent.

The projected revenue for the year 2025 is $12.970 trillion, which is 40% higher than the previous collection.

The FBR could collect additional Rs1.863 trillion revenue in FY25 if GDP stays at 3 percent, LSM growth at 3.5 percent, import growth at 16.9 percent, and the inflation rate at 12.9 percent.