The revenue collection target of the Federal Board of Revenue (FBR) would range between Rs 5,300 billion to Rs 5,400 billion for 2019-20, depending on the final revenue collection figures for 2018-19.
Sources told Business Recorder that the Ministry of Finance and the FBR are working on the proposed tax projections for next fiscal year. It depends on the final revenue collection figures for 2018-19 for setting next year target.
The FBR has proposed Ministry of Finance that the next fiscal year target should not be more than Rs 5,200 billion.
According to sources, the FBR has already approached Ministry of Finance for downward revision in revenue collection target from Rs 4,398 billion to Rs 4,050 billion during 2018-19, reflecting a reduction of Rs 348 billion. So far, the target has not been revised.
The FBR has provisionally collected Rs 2,993 billion during July-April (2018-19) against target of Rs 3,338 billion, reflecting a shortfall of Rs 345 billion.
According to the independent experts, the shortfall would be over Rs 450 billion during 2018-19. The revenue collection from income tax, sales tax, customs duty and federal excise duty (FED) remained behind the target during the July-April (2018-19).
Keeping in view the ongoing pace of collection, it is an uphill task to meet the assigned revenue collection target of Rs 4,398 billion. The FBR wants downward revision of the revenue collection target for 2018-19.
The FBR has informed the Ministry of Finance that it would be very difficult to achieve the assigned target of Rs 4,398 billion of outgoing fiscal year.
The annual shortfall in revenue collection is expected to be around Rs 450 billion by end-June. The provisional revenue collection stood at Rs 2,993 billion during July-April (2018-19) against Rs 2,922 billion during July-April (2017-18), reflecting an increase of Rs 71 billion.
The FBR has provisionally collected Rs 288 billion during April 2019 against assigned target of Rs 340 billion, reflecting a shortfall of Rs 52 billion.