The downward revision in the tax collection target of Rs. 4.963 trillion (2020-21) for the Federal Board of Revenue (FBR) is under consideration, highly-place officials told Propakistani.
The issue of the downward revision in the revenue collection target of the FBR was discussed in detail during the last meeting of the International Monetary Fund (IMF) and the Ministry of Finance. The online meeting was held only on the subject of the FBR’s tax collection tax. The FBR officials were also present in the meeting which was held at the Ministry of Finance.
The Ministry of Finance and the FBR proposed the IMF to consider a downward revision in the tax collection target of Rs. 4.963 trillion (2020-21) as it is a very challenging and gigantic task requiring growth of over 20 percent in revenue every month of the remaining period of 2020-21.
The FBR proposed the IMF to scale down the revenue collection target from Rs. 4.963 trillion to Rs 4.550 trillion for 2020-21.
Ministry of Finance has proposed a downward revision in the tax collection target from Rs 4.963 trillion to Rs. 4.600 trillion for the outgoing fiscal year.
Top officials informed that the IMF has asked the government to continue to chase the ambitious target of Rs. 4.963 trillion in the remaining half of the current fiscal year.
During the online meeting, the IMF did not agree to the proposal of the government to reduce the target to Rs 4.600 trillion or Rs. 4.550 trillion, officials revealed.
FBR officials informed that the government has not taken any taxation or revenue measures in the last budget (2020-21). The growth in revenue is only due to factors like administrative/enforcement measures, broadening the tax-base, inflation, imports, and economic activities in large-scale manufacturing and other sectors of the economy.
So far, the FBR has collected net revenue of Rs. 2.570 trillion during July-January (2020-21) against the target of Rs. 2.550 trillion, reflecting an increase of Rs. 20 billion.
According to the provisional information, FBR has collected net revenue of Rs. 2.570 trillion during the Jul-Jan period, which has significantly exceeded the target of Rs. 2.550 trillion. This represents a growth of about 6.4% over the collection of Rs. 2.416 trillion during the same period last year.
Previously, the FBR has witnessed a growth of over 4 percent during the first half of 2020-21.
The net collection for the month of January was Rs. 364 billion against a target of Rs. 340 billion, representing an increase of 12.3 percent over last January and 107 percent of the target. This is the first double-digit monthly growth during the fiscal year.