ISLAMABAD: The collection by the Federal Board of Revenue (FBR) in October fell short of its target by over Rs22 billion.
Provisional figures show the collection amounted to Rs233.7bn in October as opposed to the target of Rs256bn for the same month. The FBR witnessed a shortfall of Rs59bn in July-Sept.
An official in the Ministry of Finance said the FBR will receive a few billion rupees in days ahead. The breakdown shows Inland Revenue – income tax, sales tax and the federal excise duty – registered a shortfall of Rs21bn, as the revenue collection reached Rs199.9bn against the target of Rs221bn.
The revenue collection in October grew 3.6pc on a year-on-year basis.
“We expect to receive Rs5bn to Rs6bn in income tax when the figures are finalised,” the official said, adding that the FBR will receive additional revenues from sales tax and withholding tax at the import stage in the next few days.
The shortfall of Inland Revenue may turn out to be around Rs15bn, the official said, adding that shortfalls originated from Karachi’s large taxpayers unit (LTU) and a few regional tax offices (RTOs).
The collection of income tax amounted to Rs80.5bn in October against Rs74bn in the corresponding period a year ago, showing an increase of 8.8pc.
The collection of sales tax clocked up at Rs104.12bn during the month under review against Rs104.87 recorded a year ago, reflecting a nominal decline.
No annual growth was seen in the federal excise duty collection, as it remained flat at Rs15.3bn in October.
In contrast, the customs collection fell to Rs33.7bn in October against the target of Rs35bn, reflecting a shortfall of 3.7pc. Negative growth in the customs collection appears to be on the back of newly imposed regulatory duties on hundreds of items.
The government has also paid refunds in bulk to exporters. The FBR has issued cheques for around Rs25bn, which will be released in the next seven days, the tax official said.
A two-step strategy has been evolved to deal with the revenue shortfall: a change in the top management of LTUs and RTOs that did not perform well in July-September and the identification of steps needed for improving the collection of sales tax, income tax and the federal excise duty to recover the earlier shortfall.
Top taxmen of LTUs and RTOs have already been transferred, with a few exceptions, for failing to achieve their revenue collection targets for the first quarter.
On Sunday, Finance Minister Ishaq Dar headed a meeting at the Ministry of Finance to review the proposed revenue measures for recovering the shortfall in the second quarter of 2016-17.