FBR Faces Challenges Achieving November Tax Collection Goal

The Federal Board of Revenue (FBR) in Pakistan is grappling with significant challenges in meeting its ambitious tax collection target of Rs. 1,003 billion for November 2024. As of November 24, 2024, the FBR had managed to collect over Rs. 550 billion, leaving a substantial gap in the target. This persistent shortfall raises concerns about the government’s fiscal policies and economic stability.

Government’s Stance on Mini-Budgets

Despite mounting pressure, the government has firmly stated that no mini-budget will be introduced to generate additional revenue during the second quarter of the current fiscal year (October–December 2024-25). This decision underscores the need for alternative measures to bridge the revenue gap.

Short-Term Measures by FBR

To mitigate the anticipated shortfall of over Rs. 230 billion in the second quarter, the FBR has implemented several short-term strategies. A key focus is on identifying and targeting high-net-worth individuals.

• Issuing Notices: In its first phase, the FBR plans to send notices to 5,000 non-filers, with an estimated tax liability of Rs. 7 billion.
• Enhanced Enforcement: Field formations are working to recover taxes owed by businesses and individuals to reduce the gap.

Performance in October 2024

The FBR collected Rs. 877 billion in October 2024, falling short of the assigned target of Rs. 980 billion by Rs. 103 billion. This underperformance reflects deeper systemic challenges, including tax evasion, low compliance rates, and economic pressures.

Tax Collection in FY2024-25

From July to October 2024, the FBR collected Rs. 3,440 billion, against a target of Rs. 3,636 billion, resulting in a cumulative shortfall of Rs. 196 billion. This consistent inability to meet targets raises concerns about achieving the annual revenue collection goal.

FBR Tax FAQs

1. What is the FBR tax collection target for November 2024?
   The target is Rs. 1,003 billion.
2. How much has the FBR collected so far in November?
   The FBR has collected over Rs. 550 billion as of November 24, 2024.
3. What measures are being taken to address the shortfall?
   Notices are being issued to 5,000 non-filers, and field formations are intensifying recovery efforts.
4. Will there be a mini-budget to cover the revenue gap?
   No, the government has ruled out introducing a mini-budget for the second quarter.
5. What was the FBR collection in October 2024?
   The FBR collected Rs. 877 billion, falling short by Rs. 103 billion.
6. What is the cumulative shortfall in FY25 so far?
   The shortfall for the first four months of FY25 is Rs. 196 billion.
7. What is the estimated tax liability from notices issued to non-filers?
   The estimated liability is Rs. 7 billion.
8. What challenges does the FBR face in achieving its targets?
   Challenges include tax evasion, low compliance, and economic constraints.
9. How is the FBR targeting high-net-worth individuals?
   By issuing notices to non-filers and strengthening enforcement measures.
10. Where can I find updates on FBR tax policies?
    Visit E Haven Business for the latest updates and insights.

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