Lahore , May 25, 2023: The Federal Board of Revenue (FBR) has faced a significant loss of 446 billion 59 lakh 40 thousand rupees during the first 9 months of the current financial year, dealing a blow to the country’s tax collection efforts. This comes as a setback after the tax revenue was estimated to reach 7 thousand 470 billion rupees in 2023.
The FBR had aimed to collect a total of 1 thousand 288 billion rupees 97 crore 70 lakhs of tax in each quarter of the current fiscal year, with 577 billion 22 crore 90 lakh rupees expected in the form of direct tax and 117 billion 74 crore rupees in aid.
However, the FBR’s performance fell short, and the revenue collected in the first 9 months amounted to 5 thousand 155 billion 90 crore 60 lakh rupees, resulting in a loss of 446 billion 594 million rupees. This loss was mainly attributed to a shortfall of 476 billion 26 crore rupees in terms of direct taxes.
Additionally, there was a loss of 405 billion 93 crore 30 lakh rupees in sales tax, 56 billion 72 crore 90 lakh rupees in federal excise duty, and 13 billion 59 crore 80 lakh rupees in customs duties during the same period. The estimated tax revenue from direct taxes was 2 thousand 279 billion 25 crore rupees, but the FBR only managed to collect 2 thousand 308 billion 91 crore 60 lakh rupees in terms of income.
Despite the overall loss, the FBR did manage to generate an additional income of 29 billion 66 crore 60 lakh rupees in the form of direct tax during this period, which provides a glimmer of hope for future revenue generation.
In the previous fiscal year, 2022, the total size of the country’s economy was recorded at 66 thousand 950 billion rupees. During that year, the FBR collected 6 thousand 142 billion 802 million rupees in tax revenue, accounting for only 9.2 percent of the country’s economy.
For the current fiscal year, the ministry of finance initially set the total size of the country’s economy at 78 thousand 197 billion rupees. However, this estimate was later increased to 84 thousand 102 billion rupees, reflecting the evolving economic landscape.
The FBR’s loss in tax revenue during the first 9 months highlights the challenges faced by the board in meeting its collection targets. Efforts to improve tax compliance and enhance revenue generation will be crucial to address this shortfall and support the country’s economic growth.