ISLAMABAD (Ahmed Mughal):- The Pakistan’s tax collecting authority ,Federal Board of Revenue, missed the tax collection target by Rs.111 billion in first quarter of the current fiscal year.
In first quarter ending on 30 Sept 2019, the FBR could collect only Rs.960 billion as against the original target of Rs.1071 billion.
Chairman FBR Syed Shabbar Zaidi twitted that tax collection upto 90 percent of highly aggressive target for quarter ended September 30, 2019 has been achieved.
He said that the FBR has collected Rs 960 billion during first quarter of the current fiscal year. Some more positive adjustment is expected, he further said. The chairman said that the amount is excluded refunds of past years of Rs.15 billion.
He said that the domestic tax collection increased by 25 percent in first quarter ended up to 30 Sept 2019. The import contraction is around $3 billion in the first quarter of the current fiscal year. The decreasing trend in the imports has been estimated Rs 125 billion in the first quarter. This shows that target has been met, the Chairman FBR said.
The Pakistan has secured IMF loan program of $6 billion for 39 months in May 2019.
The Advisor to Prime Minister on Finance and revenue Dr. Abdul hafeez Shaikh has assigned the target Rs 1071 billion to the FBR with the consultation of the IMF.
The poor performance of FBR has put pressure on budget deficit which could surge more. Low tax collection of the FBR has put pressure on the govt for more reliance on borrowing to meet the cost of running of the government affairs. The Govt has set budget deficit 7.2 percent of GDP during the fiscal year.
For securing the IMF loan program, the Govt has assigned the target to FBR Rs.5.55 trillion for the current fiscal year. It is almost 40 percent high from the total collection of last fiscal year.
Due to low tax collection, the govt has also missed the target of the releases of the Public Sector Development Program (PSDP) in first quarter. The Govt has released only Rs only Rs 49 billion PSDP against Rs 89 billion in first quarter. Almost seven ministries could not get one rupee of development fund due to constrain of resources.
The Pakistani economic team has also given assurance to the IMF that the Govt will not issue less than around Rs 1.5 trillion during the current fiscal year.
Last month, the IMF visiting delegation also confirmed that IMF will not change quarterly targets.
The visiting delegation also had said that the performance of FBR is appreciable up to two months.