FBR faces Rs425b shortfall in 11 months

[ahlam1399]

ISLAMABAD: The Federal Board of Revenue (FBR) has faced a mammoth revenue shortfall in first 11 months (July-May) of current fiscal year 2018-19 that now stands at Rs425 billion.The board has so far collected Rs3,333 billion in July-May against the desired target of Rs3,758 billion, reflecting a shortfall of Rs425 billion so far.The overall shortfall might exceed Rs500 billion due to which the overall budget deficit might cross 7.5 percent of GDP or Rs2.8 trillion till end June.A top FBR official claimed that they were not taking any advances so it was year of making correction in the tax collection system.Even for achieving downward revised tax collection target from Rs4,398 billion to Rs4,150 billion, the FBR will have to collect Rs817 billion in June 2019 in order to display the revised figure of Rs4150 billion on its board.“The FBR has so far provisionally collected Rs340 billion in May 2019 against the desired target of Rs413.460 billion so the shortfall in May stood at Rs73 billion alone,” said the official sources.One official said the FBR had provisionally collected Rs320 billion till Friday evening and an amount of Rs20 billion was lying in the pipeline for clearance so the expected collection might touch Rs340 billion.When the final collection would be available after 10 days this collection might touch Rs350 billion. But the tax shortfall for whole financial year might cross Rs500 billion for the outgoing fiscal year despite announcement of amnesty scheme.The FBR officials argued that collection nosedived because of different policy actions including incentives provided to the salaries class, suspension of withholding tax on mobile cards which was now restored by the Supreme Court, slowdown of economy, and many other factors.The reasons for decline in CD collection, inter alia, include:1. Decline in total import value in dollar terms by 15% in May.2. Dutiable imports declined even more, almost by 20%, eating up entire devaluation impact.3. TEUs/quantity declined by more than 12%.Other major reasons include:4. Effective ban on import of vehicles.5. Ban on import of Furnace Oil.6. Non-Tariff barriers on edibles.7. Prohibitive RDs levied as a policy measure to compress imports.http://feeds.feedburner.com/~r/com/cwEr/~4/jTcYFK4SoZ8

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