The Federal Board of Revenue (FBR) surpassed its revenue collection target by managing to collect Rs 1.590 trillion until the last day of the outgoing fiscal year, which would play a key role in the revival of inflows from multilateral and bilateral donors. Addressing a news conference late on Thursday, a jubilant FBR Chairman Salman Siddique said the surpassing of the revenue target of Rs 1588 billion for the current fiscal year was a major achievement and would play an important role in the revival of suspended IMF programme.
Tax authorities collected Rs 1406.5 billion under inland revenue, consisting of sales tax and income tax, while the customs generated Rs 184 billion until 10pm on June 30. “Our expectation is that the revenue collection may increase to Rs 1600 billion by midnight”. There were serious concerns domestically by experts and by international donor agencies over the FBR’s performance. However, the finance minister had claimed on the floor of the House that the revenue target for the current fiscal year would be achieved.
The tax collection of Rs 1.590 trillion would enable a tax to GDP ratio of 9.2 percent for the current fiscal year, as agreed with the IMF. The target for next year is project at 9.6 percent or Rs 1952 billion. “We have provided the foundation to achieve next fiscal year’s target,” he added. He said the target was achieved with the right spirit and right steps and would be verified by the IMF’s audit process when the final figures would be provided to them after July 10. Siddique said tax defaulters would be pursued in the next year to increase the revenue to lessen dependence upon foreign donor agencies.