FBR falls 6.47pc short of their target for FY23.

KARACHI - The Federal Board of Revenue (FBR) missed its collection target for the first 11 months of fiscal year 2023 (11MFY23) by Rs430bn, or 6.47 percent, to Rs6.21tr, compared to the objective of Rs6.64tr, leaving a big gap to fill in June to meet the yearly target.

According to the statement, against a target of Rs. 621 billion, FBR was able to collect Rs.572 billion net revenue, while refunds amounting to Rs33bn were issued during the month.

The board collected Rs205bn in May 2023 under the head of domestic income tax compared to Rs131bn in May 2022, thereby showing a growth of 57%.

A healthy year-on-year growth of 28% was achieved in the domestic sales tax with collection of almost Rs100bn.

Around Rs41bn were collected as Federal Excise Duty (FED) showing a year-on-year increase of 32%. A cumulative growth of almost 44% has been achieved in the collection of domestic taxes.

“This is despite the fact that the economy has slowed down and GDP growth rate has been revised downward. Cumulative growth of almost 44% has been achieved in the collection of domestic taxes,” the statement added.

On the import side, same momentum could not be maintained due to unprecedented compression in imports. In US$ terms, imports in the country declined by 37% in May 2023 compared to May 2022, the statement added.

Moreover, the import of high duty items such as vehicles, home appliances, as well as miscellaneous consumer goods such as garments, fabrics, footwear etc have been drastically reduced, changing the import mix.

This has impacted collection of Customs duties and other taxes, it said adding despite 18% dip in collection of Customs duties, and 11% decline in overall tax collection at import stage, FBR’s overall growth was registered at 16% compared to previous year.