FBR revenue falls short by Rs22.6bn in July-Nov

ISLAMABAD: Federal Board of Revenue (FBR) suffered revenue shortfall of Rs22.6 billion during the first five months (July-Nov) of the current fiscal year, figures compiled for collection of income tax, sales tax and federal excise duty revealed. 
 
Informed sources told Dawn that FBR had targeted to collect Rs173.3 billion in income tax during the period of under review but collected only Rs155.9 billion showing a shortfall of Rs17.4 billion.


There is a shortfall of Rs5.2 billion in sales tax and FED collection. FBR was able to collect sales tax at Rs116.8 billion against the target of Rs121.2 billion showing a shortfall of Rs4.4 billion.

However, FED collections were close to the target of Rs44.2 billion with a meagre shortfall of Rs0.8 billion. But the major shortfall was recorded in sales tax.

The FBR surpassed the aggregate target of sales tax and FED at import stage by collecting Rs244.4 billion against the target of Rs240.5 billion. Figures show this excess of Rs4.4 billion was attributed to the collection of sales tax at import stage and not due to collection at domestic level, explained a FBR official.

Similarly, the board crossed the target of sales tax collections at import stage by about Rs13.3 billion, which leads to overall excess of sales tax and FED at import stage to Rs9.6 billion.

FBR had set Rs68.9 billion target for collection of sales tax at import stage whereas it surpassed the target by collecting Rs82.2 billion on the same account. However, it failed to achieve the target of Rs6.2 billion against FED by collecting only Rs2.5 billion showing a shortfall of Rs3.7 billion.

They said that the sales tax revenue surpassed the target due to excess collection at import stage and this excess collection has nothing to do with the new set up of Inland Revenue.

In fact, this shortfall would have been much higher if the refunds of sales tax were not held back. The refund per month averages to Rs2-3 billion, sources said.