The Federal Board of Revenue (FBR) has suffered a serious setback as a result of a staggering Rs. 62 billion shortfall in tax revenue for the month of May 2023.
Unofficial statistics received from the tax collector showed that the amount of taxes collected in May 2023 was Rs. 559 billion, which was much less than the allotted target of Rs. 621 billion by Rs. 62 billion.
The first eleven months (July-May) of the current fiscal year have seen the FBR collect a total of Rs. 6,200 billion.
The tax collector must now collect roughly Rs. 1,440 billion in June 2023 in order to meet the yearly target of Rs. 7,640 billion by the end of the fiscal year.
To meet the yearly target of Rs. 7,640 billion established for the fiscal year 2022–23, the FBR has the enormous challenge of collecting over Rs. 1,440 billion in June 2023.
Tax Collection Status and Annual Target of FBR
As it works to close the current shortfall and make sure the annual target is met, this presents a big test for the revenue authority.
For the tax collection firm to achieve its goal of hitting the yearly revenue target, meeting the collection target for June is essential.
The FBR is under increased pressure to improve its revenue collection operations with only one month left in the fiscal year.
In assessing the overall fiscal performance of the year and the capacity to meet budgetary obligations, the achievement of the collection objective will play a critical role.
To read our blog on “FBR’s new target Rs 9.2tn tax revenue in fiscal year 2023-24,” click here.
