Federal Board of Revenue (FBR) missed its target of revenue collection in October by over Rs. 21 billion. The tax collection agency is expected to receive a few billion rupees in a few days. The missed target was recorded in spite of the fact that the FBR has delayed payment of sales tax refunds of Rs. 12.5 billion.
The central bank is directed by the board to release sales tax refund in the next 24 hours. FBR claims to have missed revenue collection targets due to several administrative factors.
In October 2016, a growth of 12 percent was recorded in revenue collection. The provisional revenue collection reached Rs. 1,032 billion in July-October against Rs. 871 billion in the same period last year.
FBR is expecting a growth of 20 percent in the first four months in case sales tax refunds aren’t received soon. The board is expecting to improve revenue collection by the end of December 2017.
Rs. 4,013 billion is the revenue collection target for the current fiscal year even though the authority missed its collection targets for the previous year. During the last fiscal year, the tax collection target was missed by over Rs. 250 billion.
On the other hand, a growth of 20 percent was seen in the first quarter in revenue collection due to clearance of backlogs.