FBR Faces Rs113 Billion Shortfall in August Tax Collection, Hopes for Last-Minute Recovery

The Federal Board of Revenue (FBR) is currently grappling with a substantial shortfall in its tax collection efforts for the month of August. The FBR managed to collect only Rs785 billion against a target of Rs898 billion, leaving a significant gap of Rs113 billion.

As the month draws to a close, the FBR remains optimistic that the final day of August will see an uptick in revenue collection, potentially mitigating the overall shortfall. However, the final figures will not be confirmed until Monday, leaving some uncertainty in the air.

This shortfall is particularly concerning given that the FBR had exceeded its revenue target for July, collecting Rs659.2 billion against a target of Rs656 billion. Combined, the total tax collection for July and August stands at Rs1,445 billion.

The government’s overall tax collection target for the current fiscal year is an ambitious Rs12,970 billion. Meeting this target is crucial, as the government has reportedly assured the International Monetary Fund (IMF) that it will introduce a mini-budget if there is a significant shortfall in revenue collection during the first quarter.

While the FBR’s August shortfall may pose challenges, the Ministry of Finance has reported positive developments in other areas of the economy. Inflation has seen a significant decline, reaching an 11.1% rate in July 2024, the lowest in 32 months. Additionally, remittances, exports, and non-tax revenue have all shown healthy growth, contributing to an improved economic outlook for Pakistan.