Advertisement
Categories: BusinessNewsPakistan

FBR Faces Over Rs500 Billion Revenue Shortfall: Sources

Advertisement

The Federal Board of Revenue (FBR) is struggling with a revenue shortfall exceeding Rs500 billion during the first half of the fiscal year, casting doubt on its ability to meet the Rs6,090 billion target, according to sources.

The tax-to-GDP ratio stands at 10.3%, below the targeted 10.6%. Officials attribute this gap to inaccurate budget estimates for inflation and imports. Inflation, projected at 12%, dropped to 4.9%, while imports grew by only 5%, far below the anticipated 16%. This resulted in a 7% decline in import-based tax revenue, further exacerbating the shortfall.

The property sector has also contributed to the deficit. Tax rates of 11% to 12% have significantly reduced property transactions, cutting activity in half. Officials suggested that reducing property taxes could revive the sector and alleviate market pressures. They clarified, however, that the International Monetary Fund (IMF) is not influencing property tax policies.

The FBR is working on potential tax adjustments to address the challenges, particularly in the property sector, but achieving its revenue goals remains a daunting task.

Advertisement
News Desk

Recent Posts

Judicial Commission Begins Transfer Process for Five IHC Judges Under New Amendment Without Consent Condition on April 28

Chief Justice Yahya Afridi convened a meeting on April 28 to consider transferring five Islamabad…

14 minutes ago

Iran Executes Man Accused of Spying for Israel’s Intelligence Service

Iran executed a man convicted of spying for Israel's intelligence service. The judiciary's news outlet…

20 minutes ago

Expert Resigns from US HIV Role, Rejects Trump’s Global Health Strategy

Chief Science Officer for US HIV/AIDS Program Resigns Amid Criticism The chief science officer for…

1 hour ago

Tehran Unresponsive to Trump’s Ceasefire Extension Request

Iranian Authorities Await Official Response to Ceasefire Extension US President Donald Trump announced an extension…

1 hour ago

US Offers Afghans Choice: DR Congo or Return to Taliban-Ruled Afghanistan

The United States is considering offering former Afghan allies stranded in Qatar the choice between…

2 hours ago

Trump’s Erratic Messaging on Iran Confuses Plans Amid Phone Chats and Social Media Posts

President Trump's recent actions and statements regarding Iran have added confusion to ongoing discussions about…

3 hours ago