ISLAMABAD: The Federal Board of Revenue (FBR) has missed its tax collection target for May, pushing the total shortfall for the July to May period past an alarming Rupees 1,000 billion, or Rupees 1 trillion.
Sources reveal the FBR faced a Rupees 205 billion deficit in May alone, managing to collect just Rupees 905 billion against a target of Rupees 1,110 billion.
This setback comes even after the International Monetary Fund (IMF) had already lowered the current fiscal year's tax target by Rupees 640 billion. Adding to the woes, the FBR issued fewer refunds in May compared to the previous fiscal year, which typically helps with collections.
Despite efforts to boost revenue by increasing taxes on both salaried individuals and the corporate sector, the ambitious tax targets remain out of reach.
With the fiscal year rapidly drawing to a close, sources indicate the FBR faces a monumental task: it will need to collect over Rupees 2,000 billion in June alone to hit the revised annual tax target.
