Islamabad: The Federal Board of Revenue (FBR) is facing a significant challenge as it needs to collect PKR 1,196 billion in tax revenue during September to meet the International Monetary Fund’s (IMF) requirements. This follows a shortfall in the first two months of the fiscal year, where it collected PKR 1,456 billion against a target of PKR 1,554 billion.

According to Zameen.Com, the FBR’s cumulative tax collection goal for the quarter is PKR 2,652 billion. The data reveals that while domestic tax collections have seen a robust increase, with income tax up by 36% and sales tax by 40%, revenue from imports has not kept pace due to a decrease in the volume of high-duty imports. Despite a 4% increase in customs duties, the total net tax collection has risen by 21% year-on-year. The FBR remains hopeful about achieving its targets for the quarter, bolstered by expected increases in economic activity and imports in September. It is also implementing reforms such as digitisation and AI-based data integration to boost revenue collection. Nevertheless, failure to meet this ambitious target could trigger additional revenue measures under IMF directives.