Interim Finance Minister Dr. Shamshad Akhtar said on Thursday that this year’s tax collection target of more than Rs. 9.4 trillion was too low and that FBR should work on a plan to raise it to Rs. 15 trillion in the next fiscal year.
FBR To Collect Rs. 15 Trillion in Tax in the Next Fiscal Year
However, the minister’s comments came during an internal meeting about the restructuring of Pakistan Revenue Automation Limited (PRAL), a tax machinery subsidiary and its technology arm.
Moreover, Dr. Shamshad Akhtar also expressed dissatisfaction with the performance of Federal Bureau of Revenue members and requested a one-page report on their accomplishments while at FBR headquarters.
This Year’s Tax Collection
According to sources, the finance minister stated during the meeting that the FBR’s annual tax collection target of Rs. 9.415 trillion for this fiscal year was too low.
Moreover. despite a prevailing average inflation rate of nearly 29% in the first four months, this represents a 31% increase over the previous fiscal year’s actual collection.
However, the minister’s remarks may have an impact on the International Monetary Fund (IMF), which on the same day began a 14-day review of Pakistan’s performance in the first quarter of this fiscal year.
Quarterly Revenue Collection
However, the tax collector surpassed its revenue target for the fourth month in a row, collecting Rs. 2.75 trillion from July to October, exceeding the target by Rs. 68 billion and removing the need for a mini-budget.
Furthermore, the FBR received Rs. 591 billion more this year than the previous fiscal year.
According to sources, the finance minister urged the FBR to aim for a tax collection of Rs. 15 trillion in the next fiscal year, representing an 84% increase over the projected collection of Rs. 9.415 trillion this year.
To read our blog on “Against Solar panel money laundering mafia, FBR affirm a war,” click here.
