FBR collects Rs3.06tr in taxes, misses target.

ISLAMABAD -- The month of March proved catastrophic for the Federal Board of Revenue (FBR) that missed its collection target by a record Rs263 billion despite releasing Rs12 billion fewer tax refunds than what Prime Minister promised to exporters under the just-announced relief package.

Cumulatively, the shortfall in nine-month tax collection jumped to Rs693 billion against the original target and Rs459 billion compared to the revised target, according to FBR officials. The FBR's performance went down amid delay in appointing a new FBR chairman due to the pressure applied by two competing lobbies.

From July through March of the current fiscal year, the FBR provisionally collected Rs3.063 trillion. In March alone, it was supposed to collect Rs595 billion but it provisionally received around Rs332 billion, according to the officials.

The collection in March was 10.5% less than the Rs371 billion received in the same month of previous year. The FBR was required to show a 60% increase in tax receipts over March last year, which was an impossible task and suggested how badly Pakistan negotiated the IMF loan deal.

The FBR provisionally collected Rs3.06 trillion in taxes, missing its nine-month target by a record Rs693 billion. The original annual revenue target was Rs5.5 trillion.

The Rs3.05-trillion collection was higher by 12.9% or Rs352.6 billion as compared to the same period of previous fiscal year. The FBR needed to collect Rs3.8 trillion at a growth rate of 39%. Last year, the government had received Rs2.7 trillion in the same period. The IMF has agreed to revise downward the original target to Rs5.238 trillion. When compared with the IMF's revised target, the nine-month collection fell short of the goal by Rs459 billion.

However, ambiguity remains about what the actual target the IMF has now given after both sides reached a staff-level agreement last month.

The shortfall in tax collection was far higher than the impact of coronavirus contagion estimated by independent economists and the FBR. The economic activities started getting affected in the last 10 days of March but the FBR's collection remained dismal throughout the month.

The real impact of lockdown of cities would start appearing from April. Former finance minister Dr Hafiz Pasha and former State Bank of Pakistan governor Shahid Kardar have estimated revenue shortfall due to the pandemic in the range of Rs150 billion to Rs290 billion for the April-June quarter.

The FBR itself has...