Islamabad, Pakistan: The Federal Board of Revenue (FBR) is facing a significant revenue shortfall of Rs. 275 billion in the first quarter of the current fiscal year. This shortfall is expected to reach Rs. 175 billion this month alone, leading to speculation about the introduction of a mini-budget worth approximately Rs. 1 trillion.
To meet the annual tax target of Rs. 12.97 billion, the FBR must collect Rs. 1.1 billion this month. However, with a projected collection of around Rs. 950 billion by the end of September, the shortfall for August and September combined could reach Rs. 250 billion.
Internal assessments at the FBR have raised concerns about the possibility of monthly revenue shortfalls throughout the fiscal year, jeopardizing the achievement of the annual tax target. Pro Pakistani
The proposed mini-budget is considering measures such as eliminating sales tax exemptions and increasing withholding tax. Implementing a uniform sales tax rate is also being explored.
These measures are aimed at addressing the revenue shortfall and ensuring compliance with the IMF’s targets. However, the burden of these measures may fall disproportionately on existing taxpayers, as expanding the tax net may not be feasible in the short term.
