Revenue shortfall rises to Rs387bn.

Byline: Mubarak Zeb Khan

ISLAMABAD -- The Federal Board of Revenue missed collection targets for the first seven months of this fiscal year by Rs387 billion, as against the benchmark of Rs2.792 trillion.

According to provisional figures, the tax body has collected Rs2.41tr during 7MFY20 as against the target of Rs2.79tr, leaving a shortfall of Rs387bn.

However, collection figures show a growth of 16.8 per cent compared to same period last year's level of Rs2.07tr.

In January, the tax body posted a shortfall of Rs104bn with Rs321bn in revenue collection, versus the target of Rs425bn for the same month last year.

The tax authority estimates to collect another Rs3-5bn in book adjustments. A more than double of the current growth levels would be required to approach the annual target.

January target missed by Rs104bn

During the first seven months of the current fiscal year, the FBR paid Rs69bn refunds to taxpayers, mostly exporters.

The FBR on Friday also extended the last date for filing of income tax returns/statements for TY19 until February 28. It is available to all individuals (salaried and non-salaried), association of persons and companies.

Until Jan 31, the FBR has received as many as 2.339 million returns while the date has been extended to receive another 500,000. Last year, number of returns filed stood at 1.8m - the highest ever.

The InternaAtional Monetary Fund team is due next week to conduct a review. It has already lowered the annual revenue collection target to Rs5.270tr from the budgetary projection of Rs5.503tr.

The customs gross collection fell short of target by Rs114.9bn (or 23.5pc) to Rs373.2bn in 7MFY20 versus the projected amount of...