The FBR conundrum

Failure on this score should be embarrassing for the FBR considering that its primary job is to generate revenue

The Federal Board of Revenue (FBR) is already Rs235 billion off its collection target for the first eight months of the current fiscal year. In February alone, the Board missed its target by Rs45 billion, collecting Rs268 billion only against a target of Rs313 billion. Now it faces the daunting task of collecting Rs2.1 trillion in the next four months if it is to meet its annual target.

FBR officials and Finance Minister Asad Umar have blamed tensions with India for the exceptionally poor collection figures for February. But despite the FBR’s failure to meet the tax collection targets in previous months, the minister has ruled out a downward revision of the collection target. The provisional figures show declines in withholding taxes collected on contracts, mobile phones, dividends and salaries. Corporate returns also dipped because of the one per cent tax rate cut.

Meanwhile, even though the FBR has failed to meet collection targets, it has no qualms about spending money, even if it’s not sure where and why. This is inexplicable at a time when the government has announced an austerity drive.


Even the NA Standing Committee on Finance has expressed displeasure over the lack of priority at the FBR for the proposed projects under the Public Sector Development Programme for the next fiscal year. The committee members were also annoyed over the lack of progress on the establishment of customs offices at the Torkham and Chaman borders, which are vital for regional trade and the implementation of the Integrated Transit Trade Management System. They noted that the two new customs offices would help plug revenue losses due to smuggling thereby bringing more revenue into the state coffers. The failure on this score should be embarrassing for the FBR considering the fact that its primary job is to generate revenue. The Senate panel felt both bemused and angry when they found that the FBR was demanding funding for projects that have not even been approved and instructed it to submit a revised list of prioritised projects.

Published in The Express Tribune, March 2nd, 2019.

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