- The FBR had set the RS12.97TR tax revenue objective during fiscal year 25.
- The tax objective was revised twice during the last financial year.
- Was brought back to RS12.332TR then RS11.9Tr.
Islamabad: The end of exercise 2024-25, it has been revealed that the Federal Bureau of Return (FBR) missed its RS12.97 tax collection objective by 1.235 Billion of rupees, perceiving only RS11,735 billion rupees.
According to a report published in the news, the objective of tax collection was revised twice at the drop-first in February-March 2025, from RS12.97T to RS12.332TR, then in the 2025-26 budget, when it was reduced to Rs11.9Tr.
The achievement of the tax collection objective of next year of RS14.131TR for the financial year 2025-26, from July 1, 2025 (today) will be difficult for the FBR, because it did not manage to respond to the basic collection of RS11.9TR. This means that the income authority will have to intensify efforts to achieve the objective of the coming exercise.
Due to this deficit, the government has limited options but to restrict expenses to maintain the budget deficit – in particular the primary balance – within the framework of the interests of the International Monetary Fund (IMF) for June 2025. Reduced interest payments, initially provided for RS9.7TR for the outgoing exercise, were lowered to RS8.9 RS0.8Tr.
“The annual target of tax collection was ambitious at RS12.3TR, marking a substantial increase of 32% compared to the RS9.3TR collected during the financial year 2023-24,” said an FBR press release.
He indicated that the target was formulated according to the hypothesis of an autonomous growth rate of 15% during financial year 25.
“Given the moderate economic environment and autonomous growth lower than forecasts, the tax collection estimated for exercise 25 without any corrective measure would have been projected at RS10.07TR,” he added.
The tax collection organization has also declared: “If the government had opted for budgetary policies that have undergone higher inflation, this would have led to a corresponding increase in interest rates as well as an increase in debt reimbursements. Such policies would have deepened economic inequalities. Those who live or below the poverty line have saved their real income and their pressures on the cost of life.”
He explained that in response to the challenge of the lower collection due to macroeconomic pressures, the FBR has undertaken significant efforts to strengthen the application, improve administrative efficiency and implement new political measures. “These interventions have succeeded in raising the collection of provisional total tax at RS11,735TR, which represents an increase of 26% compared to the previous year,” he added.
Provisionally, the total collection of RS11.735TR consists of RS5.784TR in income tax (growth of 28% compared to the previous year), RS3.9 Billion of sales tax (26% growth compared to the previous year), RS0.767Tr in function of personalized growth (16% of the previous year) and RS1.284T growth (27% compared to the previous year).