Rs684bn Sept target: FBR required to collect around Rs120bn in 2 days

ISLAMABAD: The Federal Board of Revenue (FBR) is facing a gigantic task to collect around Rs120 billion in the remaining two days of September to meet the monthly target of Rs684 billion by the end of the current month. So far, the FBR’s provisional revenue collection has stood at over Rs565 billion in September 2022 against the target of Rs684 billion, reflecting a shortfall of over and above Rs119 billion.

The FBR was required to collect nearly Rs60 billion per day in the last two days of September 2022 to meet the monthly target of Rs684 billion.

If the FBR fails to achieve the monthly target of Rs684 billion, the government would have to take contingency revenue measures including the imposition of sales tax on petroleum products. However, the FBR has intensified efforts to meet the desired revenue collection target to avoid contingency revenue measures.

Presently, the tax machinery is facing a challenging task to meet the assigned revenue collection target of Rs684 billion during September 2022.

Tax authorities have devised a strategy in consultation with Chief Commissioners of the LTOs and heads of MTUs to maximise revenue collection.

FBR analysing flood impact on revenue collection

The last date for payment of advance tax installments expired on September 25 and most of the corporate sector has deposited their due installment of advance tax by September 25.

Through the video link, the FBR reviewed the revenue performance of the big tax offices and medium tax offices. The possible decrease in revenue collection under few heads due to devastating floods was also discussed during the meeting.

In the last month, the FBR had provisionally collected net revenue of Rs489 billion during August 2022 against the target of Rs483 billion, reflecting an increase of Rs6 billion.

During the first two months of July and August of 2022-23, the FBR has collected Rs948 billion against the assigned revenue collection target of Rs926 billion. So far, the Board has surpassed the assigned target by Rs22 billion in the current fiscal year 2022-23. According to the provisional data, the FBR has collected net revenue of Rs489 billion during August 2022, which has exceeded the target of Rs483 billion against Rs448 billion collected during the same period last year.

Copyright Business Recorder, 2022