FBR falls Rs386bn short of revenue target

The Fe­­d­­eral Board of Revenue missed its revenue collection target by nearly Rs386 billion in the first half of the current fiscal year, as a decline in im­­p­orts and lower-than-expe­cted inflation impacted tax receipts. According to provisi­on­­al figures released on Tu­­esday, FBR collected Rs5.623 trillion between July and December aga­inst the target of Rs6.009tr. However, the collection is 26pc higher compared to the year-ago figure of Rs4.466tr. The shortfall is largely attributed to reduced tax collection from imports due to a slowdown in tra­de, sluggish manufacturing growth and unexpectedly low inflation, which has dropped to single digits in recent months. December alone saw a gap of Rs47bn, with Rs1.326tr collected aga­inst a target of Rs1.373tr. However, this represen­t­­ed a 35pc increase compa­red to Rs984bn collected in December last year.