ISLAMABAD - The International Monetary Fund (IMF) has reportedly noted that Federal Board of Revenue (FBR) could not achieve the proposed revised revenue collection target during the ongoing financial year (2012-2013), said an official.
Sources informed that IMF, in recently concluded technical talks under Post Programme Monitoring, noted that FBR is struggling to achieve the revenue collection target during the ongoing fiscal year that would result in higher budget deficit. Sources said that FBR informed the Fund revenue collection target might be revised down to Rs 2232 billion from earlier Rs 2382 billion. However, IMF members expressed different viewpoint on revenue collection and said that FBR could not achieve revised target of Rs 2232 billion keeping in view its progress in the present financial year so far.
Federal Board of Revenue (FBR) is struggling to achieve the revenue collection target fixed for the current fiscal year. The FBR had so far collected Rs 900 billion in the first six months (July-December) of the current fiscal year against the projected target of Rs 970 billion, leading to shortfall of around Rs 70 billion. FBR has to collect Rs 246.67 billion every month in next six months to reach the annual target of Rs 2381 billion, which seems challenging for FBR keeping in mind country’s current economic situation.
Federal Board of Revenue would ask the Finance Ministry to revise down the revenue collection target by Rs 150b to Rs 2231b from Rs 2381b, as FBR faced massive revenue shortfall of around Rs 70b during the first half (July-December) of the current fiscal year. The budget deficit will be revised to 5.3pcof the GDP (around Rs 1,255b) from 4.7pc of the GDP (Rs 1,105b) if FBR requested Finance Ministry to reduce the revenue collection target by Rs 150 billion for the current financial year.