The Federal Board of Revenue (FBR) has been able to collect Rs. 227 billion during May 2020 as compared with Rs. 330 billion during May 2019, reflecting a decrease of Rs. 103 billion as the pandemic has slowed down economic activities all over the country.
During the first eleven months of July-May 2019-20, FBR was able to collect Rs. 3.534 trillion against the annual revised target of Rs. 3.908 trillion set for the entire fiscal year (2019-20), reflecting an amount of Rs. 374 billion to be collected in June 2020.
FBR now faces the huge task of collecting Rs. 374 billion in the last month for achieving a downward revised target of Rs. 3.908 trillion till June 30, 2020. Last year, the FBR had collected Rs. 518.357 billion during June 2019.
The revenue board had collected Rs. 242.460 billion in April 2020 against the revised target of Rs. 200 billion, reflecting an increase of Rs. 42.46 billion.
Taking into account FBR’s performance during the last three months, it will be an uphill task for the FBR to achieve the desired tax collection target of Rs. 3.908 trillion in the current circumstances.
The International Monetary Fund (IMF) had revised the projection of the Federal Board of Revenue (FBR) tax collection of Rs 4.8 trillion pre-COVID-19 to Rs 3.908 trillion post-COVID-19 for the current fiscal year, reflecting a decrease of Rs. 0.892 trillion.