FBR has to collect Rs1,033b in 61 days to achieve target

ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs2,922 billion in first 10 months (July-April) period of the current fiscal year and the board will have to collect Rs1,033 billion in remaining two months (May and June) for achieving downward revised target of Rs3,935 billion till end June 2018.

Although, it will be gigantic task for the tax collection machinery to fetch over Rs1,000 billion in last 61 days of the outgoing fiscal year. The incumbent regime has 31 days before completing its tenure and then the caretaker setup would assume reins of power in last 30 days of June for completion of fiscal year 2017-18.

The budget deficit target has been revised upward to 5.4 per cent of GDP for the outgoing fiscal year. In the wake of expected shortfall on both FBR’s collection and non- tax revenues as well as expenditures overrun might pose threat for touching the deficit 6 per cent of GDP by end June 2018.

“The larger part of achieving the budget deficit depends upon the performance of provinces as if they throw revenue surplus then the deficit will remain under control but if it does not happen then it is expected to cross psychological barrier of 6 per cent again at the twilight of outgoing PML-N tenure,” said the official sources.

According to the announcement, the Federal Board of Revenue, during first 10 months of the current financial year, has recorded a provisional net revenue collection of over Rs2922 billion as against Rs2,513 billion collected during the same period of the previous fiscal year, excluding collection on account of book adjustments which depicts an increase of over 16%. The increase is despite Rs68 billion tax refunds issued during 2018 as compared to Rs53 billion refunds issued during the corresponding period of previous fiscal year recording an increase of 28%.

The provisional collection for the month of April 2018 is Rs295 billion excluding collection on account of book adjustments as against Rs252 billion collected during the corresponding month of the previous fiscal year. The FBR has recorded an increase of over 17% over the revenue collected during the April 2017. The figures of collection received in the treasuries of the remote areas may further swell the revenue figures.

The revenue collection trend during the first 10 months of the financial year augurs well for the efforts of the FBR towards achievement of the assigned revised annual revenue targets, said the FBR.