The shortfall in revenue collection was Rs 164 billion in (July-October) 2019-2020, Rs 211 billion in July-November period, Rs 218 billion in July-January (2019-20) and it reached Rs 325 billion. According to the FBR sources, 43 percent growth in revenue collection is required to reach projected revenue figure of Rs 5.2 trillion against existing growth rate of 16.3 percent.

The highest growth ever achieved by the FBR is over 21 percent during 2015-2016.

Keeping in view the revised tax collection target of Rs 5,238 billion for 2019-2020, the shortfall in revenue collection has been estimated over Rs 600 billion by the end of 2019-20.

Pakistani authorities acknowledged that generating 4.7 trillion rupee tax revenue would be a challenge, comprising a 15 percent reduction from the 5.5 trillion rupee budgeted target.

Sources said that the FBR was unlikely to achieve Rs 6,799 billion tax collection target agreed with the International Monetary Fund (IMF) for the next fiscal year with official stating that the collection might not exceed beyond Rs 6 trillion given the shortfall in the current fiscal year.

They said that the next year projection of Rs 6.7 trillion was based on the projected target of Rs 5.5 trillion for the current fiscal year and shortfall in revenue collection would erode the base by Rs 800 billion for the next fiscal year.

Copyright Business Recorder, 2020