FBR Slightly Lowers FY25 Tax Collection Target After IMF Approval

The Federal Board of Revenue (FBR) has slightly lowered its annual tax collection target downward from Rs. 12.97 trillion to Rs. 12.913 trillion for the fiscal year 2024-25. Both FBR and the International Monetary Fund (IMF) have agreed on monthly and quarterly targets to achieve the new target of Rs. 12.91 trillion by June 2025. The FBR has set a tax collection target of Rs. 2.642 trillion for the July-September FY25, with specific monthly targets of Rs. 656 billion for July, Rs. 898 billion for August, and Rs. 1.098 trillion for September. The IMF accepted the revised target after the FBR rationalized expenditures. Despite the lower tax target, the overall fiscal deficit and primary surplus targets for the current fiscal year remain unchanged. The IMF has stipulated that if the agreed quarterly revenue targets are not met, a contingency plan for additional revenue measures will be implemented. FBR expects to collect Rs. 50 billion from retailers through the Tajir Dost Special Procedure, 2024 during the current fiscal year and plans a media campaign to promote the Tajir Dost Scheme’s online integration. Regarding tax notices to approximately 5 million tax evaders identified by McKinsey consulting firm, notices have already been sent to individuals who stopped filing tax returns.