FBR Faces Revenue Shortfall of Rs. 90 Billion in October 2024
The Federal Board of Revenue (FBR) encountered a significant revenue shortfall in October 2024, with collections falling by Rs. 90 billion. Sources indicate that the month’s target of Rs. 980 billion still needs to be met, further pressuring the already challenged regulator. This adds to a cumulative shortfall of Rs. 92 billion for the first quarter (Q1) of FY25. The total deficit from July to October now stands at Rs. 180 billion, raising concerns about the FBR’s ability to meet annual targets.
The FBR has introduced an ordinance focused on implementing new tax measures. These steps aim to enhance revenue collection and address the shortfall. the FBR is intensifying its enforcement efforts to recover lost revenue and mitigate future deficits.
FBR’s Efforts to Bridge the Gap
The FBR’s report underscores the growing revenue gap, drawing attention from the International Monetary Fund (IMF). One focal point is the sales tax exemption on tractors, which has been adjusted from 14% to align with IMF stipulations. The new ordinance proposes eliminating the 4% sales tax exemption to boost FBR’s tax collection and help close the revenue deficit.
