FBR achieves Rs1.71tr tax target

According to The Express Tribune, the Federal Board of Revenue reached its July-August collection goal of Rs1.71 trillion, though growth remains slow. Provisional figures show receipts of Rs1.722 trillion, only Rs55 billion or 3.3% above the same period last year. That pace trails the 17.4% increase needed to hit the annual target of Rs15.263 trillion.

Collections in July were strong enough to cover the two-month goal, but August fell short by Rs29 billion as of Monday evening, senior tax officials said. Sales tax was the main driver, bringing in Rs719 billion, Rs85 billion above target and 14% higher than last year. Income tax came in at over Rs685 billion, Rs74 billion below its target and down 4% year on year.

The annual target carries extra weight because the IMF has made tax targets binding, and approval of the sixth loan tranche hinges on the first-half goal. Provinces have also promised a little over Rs1 trillion in grants for defence and water projects, subject to collection of Rs15.263 trillion. The draft Statutory Regulatory Order 288 remains non-operational, which has kept about 14 service providers from joining the digital reporting system.