The fiscal year is due to end on June 30. PHOTO: FILE
ISLAMABAD: The Federal Board of Revenue (FBR) is likely to miss its tax collection target by Rs200 billion, reported Express News on Wednesday.
The shortfall comes at a time when government is struggling to overcome a crippling energy crisis mainly because it does not have funds to pay for the fuel.
FBR has originally set a target of Rs2.381 trillion for fiscal year 2012-13, which ends June 30.
In face of the shortfall in revenue collection, the government had been borrowing heavily from commercial banks to meet its expenses.
Power subsidies and ailing state-run corporations have added pressure on government's finances, officials said.
COMMENTS (7)
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This was bound to happen. Their policies make no sense. Consider the capacity tax on the beverage industry. It will lead to the closure small and medium businesses and will save the two large beverage companies millions of dollars in taxes. Where will the government earn tax revenues? The government is helping those industries with people close to them. The PML-N is miserably failing to create a fair and prosperous business environment.
FBR should remember the global rule…. Tax is never paid; it’s always been collected.
When the Income Tax Lawyers will become "Brokers" between the Tax Collector and the Tax Payee in the entire country, how can one expect that FBR will be able to get Rs.200 billion tax recovery?
FBR should find a fair balance, you cant put a high tax on industrialist/businessmen (job creators) nor can you highly tax white collar citizens (middle class)..its mainly how the government uses the tax money productively that what matter.
Tax the power elite (i.e. politicians / industrialist/fuedal/bueraucrates) for last 5 years properly and FBR will exceed the target.
Tell me something new!
FBR tax collection will be below Rs 2000 billion.It will be close to Rs 1975 billion. FBR messed up in first 8 months of the year.All transfer postings were done for considerations other than merit.