FBR Misses Tax Collection Target By Rs. 90 Billion in First Quarter of FY25

The Federal Board of Revenue (FBR) has suffered a massive shortfall of over Rs. 90 billion during the first quarter (July-September) 2024-25. FBR has collected Rs. 2,562 billion against the assigned target of Rs. 2,652 billion set for the first quarter of the current fiscal year. However, the FBR has achieved the monthly target of Rs. 985 billion set for September 2024 by collecting gross revenue of Rs. 996 billion during the month. The tax collection target for September 2024 has been met, but there is a huge shortfall of Rs. 90 billion during the first quarter (July-September) 2024-25. So far, the FBR has received 3.6 million income tax returns for tax year 2024 with 1.3 million nil-filers during this period. The FBR has received 3.6 million income tax returns for the tax year 2024 against 1.9 million during the same period last fiscal year. For the tax year 2023, the FBR has received a total of 6.2 million returns. The FBR has received an amount of Rs. 95,708 million as tax along with the returns during tax year 2024. The persons registered from July 2023 to date stood at 825,257 including 497,092 nil-filers. However, the persons registered from July 2024 to date are 340,473 including 237,237 nil-filers. Sources said that the government will promulgate an Ordinance containing enforcement measures against non-filers and nil-filers; etc, to meet the tax collection target of Rs. 12,915 billion for 2024-25. Recently, the prime minister approved FBR’s transformation plan containing enforcement measures regarding abolishing the non-filer category besides restructuring non-registered business entities. The advance tax installment was also due in September 2024 being paid by the corporate sector and banks. The FBR had suffered a huge shortfall of Rs. 98 billion in tax collection during the first two months of 2024-25, as net collection stood at Rs. 1,456 billion against the assigned target of Rs. 1,554 billion during this period.