In accordance with the economic crunch Pakistan is facing due to the Coronavirus pandemic, Federal Revenue Board (FBR) set a decreased tax collection target for the month of May 2020. However, despite the measures, FBR failed to achieve the desired numbers and settled at Rs227 billion.
The body, as per government and International Monetary Fund (IMF) directives had to collect Rs250 billion – a target that was revised after the pandemic hit the economic sector of the country. The collected tax is also Rs103 billion or 31.2% less than last year’s collection of the same month.
In the last fiscal year, FBR had collected Rs3.83 trillion and this time had the directive from IMF to achieve Rs5.5 trillion in terms of tax revenue. The target seeing the Coronavirus situation was an overwhelming 45% more than last year and was revised to Rs3.908 trillion.
Given the current month’s failure to achieve a downward revised target, FBR will now have to achieve a revenue collection of over Rs300 billion in the month of June, to meet the year-end goal.