In the first 11 months of the current fiscal year, the Federal Board of Revenue (FBR) collected Rs. 5.35 trillion in taxes, leaving it with the job of collecting another Rs. 750 billion in June to meet the reduced target established when the mini-budget was enacted.
According to an official release, the FBR collected Rs. 5.35 trillion in taxes from July to May of the current fiscal year (2021-22), an increase of about 28.4 percent over the same period the previous year.
The total amount collected was Rs. 1.18 trillion higher than the previous year.
The previous government of Pakistan Tehreek-e-Insaf (PTI) had committed to the International Monetary Fund (IMF) to collect Rs. 6.1 trillion during the previous fiscal year, as well as imposing Rs. 360 billion in new levies in the mini-budget.
The FBR fired Asghar Khan, the brother of former secretary to the Prime Minister Azam Khan, as Chief Collector Customs North Zone on Tuesday. Ali Raza Hunjra has been appointed as the next chief collector in his place.
By Rs. 21 billion, the FBR missed its revised tax target of Rs. 511 billion for May. It brought in Rs. 490 billion, an increase of almost 28.5 percent.
The FBR stated that the removal of sales tax on all petroleum products resulted in a revenue loss of Rs. 45 billion.
At least six monthly benchmarks were missed by the tax department. Despite an upward revision in the annual target after the mini-budget, the prior management kept the first-half targets low and did not officially alter the second-half targets.
The PTI government slapped a 17 percent tax on hundreds of commodities, including food and restaurants, in order to stoke inflation.
The tax authorities must now collect Rs. 750 billion in June to meet the aim of Rs. 25 billion per day.
To read our blog on “Import taxes may be raised by the government,” click here.
