IMF Rejects FBR’s Request to Lower The Revenue Collection Target

By Jehangir Nasir and Amin Yusufzai

The International Monetary Fund (IMF) has not accepted Pakistan’s request to decrease FBR’s annual revenue target of Rs. 5.5 trillion, however, efforts will continue to convince them.

This was disclosed by Chairman FBR Shabbar Zaidi while talking to media persons after the meeting of Senate Standing Committee on Finance.

When asked about slashing FBR’s target in the Parliament House, Shabbar Zaidi replied that the board has requested to reduce the target but the IMF did not accept it. “We will continue efforts to convince the IMF for slashing it down,” he added.

It is pertinent to mention that the target was described as unrealistic and ambitious by many independent economists soon after it had been announced.

Earlier, a parliamentary panel met with Farooq Hamid Naek here on Monday and was attended by Senator Syed Shibli Faraz, Senator Mohsin Aziz, Senator Mian Muhammad Ateeq Shaikh, Senator Muhammad Akram and senior officers from the Ministry of Finance Revenue and Economic Affairs, FBR, State Bank Of Pakistan, Customs of Pakistan along with all concerned.

The Senate Standing Committee on Finance Revenue and Economic Affairs was informed that the Federal Board of Revenue (FBR) has collected Rs. 1,280 billion against a target of Rs. 1,447 billion in the current fiscal year (2019-2020) which is 16.3 percent higher than the previous year but fell short of the Rs. 1447 billion target.

Discussing details of the increase in the number of taxpayers in the current financial year, the committee was informed that an increase of 65.2 percent was observed compared to last year. The committee was also informed that out of 2,655,081 return filers, 888,748 new taxpayers have been added. The number of individuals that availed the Asset Declaration Ordinance 2019 was 124,208. Tax payment of Rs. 4.7 billion under the present scheme was also observed.

The agenda presented before the committee included smuggling of LED TVs referred by Chairman Senate, briefing on details of non-performing loans and reasons for an increase since July 2018, steps are taken to get Pakistan out of the FATF grey list and details of tax collection 2019-20, increase in the number of taxpayers and sums of money recovered.