ISLAMABAD: The Federal Board of Revenue (FBR) missed its January tax collection target by Rs. 80 billion, managing to collect Rs. 872 billion instead of the targeted Rs. 956 billion.
In the first seven months of the current fiscal year (July to January), the FBR gathered Rs. 6,496 billion in taxes, falling short of its target of Rs. 6,964 billion by over Rs. 465 billion.
Despite the shortfall, the FBR reported a 29% month-on-month growth in tax revenue and a 26% increase year-on-year for the July-January period.
The FBR also met its Tax-to-GDP ratio target as per the International Monetary Fund’s (IMF) requirements.
In December, the FBR collected Rs. 1,328 billion, missing its target of Rs. 1,370 billion by Rs. 42 billion.
Reports also highlighted that the Large Taxpayer Office (LTO) Karachi set a new record with a 20% increase in tax collection compared to the same period last year. During the first five months of the fiscal year 2024-25, LTO Karachi collected Rs. 1,110 billion, up from Rs. 924 billion in the previous year.
Additionally, the FBR has halted the purchase of over 1,000 vehicles for its officers, following directives from the Senate Standing Committee on Finance. Chairman FBR, Rashid Langrial, confirmed that vehicle purchases will remain frozen until the finance committee is satisfied, with the Public Procurement Regulatory Authority (PPRA) being summoned to clarify the rules. Despite the revenue shortfall, the FBR had initially planned to buy 1,200cc vehicles for its officers and pay Rs. 3 billion upfront, with the remaining amount in installments.
