Hi Everyone! I hope you are all doing well. Welcome back to another blog. In this article, we will talk on the topic in detail “FBR Registers Enormous Tax Revenue Deficit”.
The Federal Board of Revenue (FBR) has been unable to meet its revenue targets for the current fiscal year, resulting in a massive tax revenue deficit. The government had set a target of PKR 4.7 trillion ($29.4 billion) for the FBR to collect in taxes in the fiscal year 2022-23. However, the FBR has only managed to collect PKR 1.75 trillion ($10.94 billion) in the first nine months of the fiscal year, which is a shortfall of PKR 427 billion ($2.67 billion). This article will discuss the reasons behind the enormous tax revenue deficit and its potential impact on the economy.
In April 2023, the Federal Board of Revenue (FBR) faced a significant shortfall of more than Rs. 100 billion. The bureau managed to collect almost Rs. 486 billion during the month, which is lower than the target of Rs. 586 billion set by the government. The FBR will finalize the figures for the month of April 2023 in the next two days, up to April 30. It is expected that the revenue collection will improve after the final figures are compiled by the end of April 30.
These figures compiled by the FBR reveal that the tax collection system of the country is not performing well, and the government needs to take corrective measures. The shortfall in revenue collection is an alarming situation, and the government should look for ways to increase revenue and reduce expenses.
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Tax Revenue Deficit
The government may consider introducing new policies to promote economic growth and encourage investment in the country. They could improve tax collection efficiency. Taxpayers should pay their fair share of taxes. Prompt action is crucial to address revenue collection shortfall. Shortfalls can have a significant impact on the economy. Government and FBR should work together to increase revenue collection. Solutions are needed for sustainable economic growth. The FBR must gather Rs. 2.58 trillion in federal taxes in the upcoming quarter (April-June) to meet the annual tax collection goal of Rs. 7.64 trillion.
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The bureau directed Large Taxpayer Units, Corporate Regional Tax Offices, and Regional Tax Offices to open on April 30. The offices must remain open until 8 pm on Tuesday. They will assist taxpayers in paying their dues and submitting their tax returns. The FBR instructed Chief Commissioners-IR to communicate with SBP and authorized branches of NBP. The communication aims to ensure the transfer of tax collection by these branches on April 30.
To ensure tax collection is transferred on April 30, FBR instructed Chief Commissioners-IR to establish direct communication with SBP and authorized branches of NBP. The Chief Commissioners-IR will be responsible for ensuring the successful transfer of tax collection through these branches.
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