The tax machinery is required to collect over Rs. 665 billion per month from November 2022 to June 2023 to meet the assigned annual revenue collection target of Rs. 7,470 billion for the current fiscal year (FY23)
Sources told ProPakistani that it is an uphill task to collect Rs. 665 billion in each month of the remaining period of the current fiscal year.
The Federal Board of Revenue (FBR) has to achieve the target of Rs 5,321 billion during November-June FY23 to meet the annual target for FY23. According to the FBR’s data, a growth of 21.5 percent is needed to meet the annual target.
During July-October FY23 period, the achievement of the income tax target stood at 108.6 percent. The achievement of the sales tax target was 96.9 percent, the excise duty 103.9 percent, and the achievement of the customs duty target was 88 percent.
The provisional collection during July-October FY23 stood at Rs. 2,149 billion, exceeding the target for the period by Rs. 5.4 billion.
Data revealed that the import compression had a negative impact on revenue collection with tax collection from imports witnessing a decrease of 0.6 percent during July-FY23. However, with import restrictions being eased, there is hope that tax collection would register some increase.