ISLAMABAD: The Federal Board of Revenue (FBR) is likely to face a revenue shortfall of around Rs700 billion during the first ten months from July to April of the current fiscal year.
According to reliable sources, against a tax target of Rs1,029 billion for April, Rs810 billion had been collected until yesterday, while after including today’s collection, total receipts are expected to exceed Rs900 billion.
For the July-April period, a total tax target of Rs10,910 billion was set, against which Rs10,100 billion had been collected until yesterday, and after today’s collection, total FBR revenue is expected to reach around Rs10,200 billion.
During this period, tax refunds amounting to Rs500 billion were issued, compared to Rs440 billion during the same period last fiscal year, reflecting an increase of Rs60 billion in payments this year.
The Federal Shariat Court has declared the super tax imposed under the Income Tax Ordinance 2001 (Sections 4B and 4C) constitutional, endorsing the FBR’s stance. However, the court clarified that income already exempt under the law will not be subject to the super tax.
The court observed that the super tax is an additional income tax with constitutional backing, and Parliament has full authority to impose taxes under the Constitution.
According to the FBR, Rs290 billion has been collected under this head during the first nine months of the current fiscal year, which is expected to increase to Rs315 billion by June 2026.
Sources said the revenue shortfall has persisted for nine consecutive months, and reliance is being placed on super tax and advance tax to meet targets, but the overall goal has not been achieved.
The FBR’s target for the current fiscal year was set at Rs14,131 billion, later revised downward to Rs13,979 billion.
