ISLAMABAD: The Federal Board of Revenue (FBR) missed its collection target by almost 9.82 per cent, or Rs61 billion, for May owing to a steep decline in imports as well as poor sales tax performance, showed provisional data.

The revenue collection stood at Rs560bn in May against the target of Rs621bn. This reversal of trend will make it a daunting task for the FBR field formations to make a huge recovery in June, the last month of FY23, to achieve the annual target.

However, May’s collection posted 13pc growth compared to last year’s Rs495bn. A few billions more may come to the government kitty when book adjustments are made in the next few days.

As a result of April’s dip, the shortfall widened to Rs442bn as total collection stood at Rs6.198 trillion in 11MFY23 against the target of Rs6.640tr. The tax authorities, however, recorded a 15.44pc growth over Rs5.369tr collected in July-May FY22.

The growth is much below what the government had committed to the International Monetary Fund to achieve the projected target of Rs7.47tr for FY23.

The tax collection at the import stage fell drastically in 11MFY23 compared with the projected target for the same period. The decline was mainly attributed to a fall in imports of high-duty items like automobiles, electronic appliances, ceramics and other non-essential products.

The focus of the government is only to allow the import of energy, food and pharmaceutical products in a bid to save foreign exchange of the country. This is clear from the fact that the customs collection in May stood at Rs75bn as against the projected target of Rs105bn, a shortfall of Rs30bn in customs collection.

Published in Dawn, June 2nd, 2023

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

World Cup squad
24 Sep, 2023

World Cup squad

THE stress was on continuity — trusting and backing players who had been with the team — as Pakistan’s squad...
Mirwaiz freed
Updated 24 Sep, 2023

Mirwaiz freed

It is safe to assume that the release of Mirwaiz Umar Farooq could not have been possible without the green light from New Delhi.
Beyond lip service
24 Sep, 2023

Beyond lip service

UN SECRETARY GENERAL António Guterres did not mince words at the recently held Climate Ambition Summit: “Humanity...
IMF chief’s advice
Updated 23 Sep, 2023

IMF chief’s advice

Pakistan's prolonged fiscal deficit, surpassing 7pc, stems from the government's reluctance to widen the tax base.
No closure
Updated 23 Sep, 2023

No closure

WHAT is a Pakistani life worth in the eyes of the state? Clearly not enough, if one were to draw a comparison with...
Missing footballers
23 Sep, 2023

Missing footballers

IN the nation’s living memory, Balochistan’s burns have never run dry. The province has grappled with historical...