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

Netanyahu: Iran Campaign Not Over Amid US-Pakistan Mediation Talks

Israeli PM Netanyahu Maintains Firm Stance on Iran Campaign Israeli Prime Minister Benjamin Netanyahu has…

18 minutes ago

Denise Jonas Discloses Health Scare: Recent Stroke Update

Denise Jonas, mother of Kevin, Nick, and Joe Jonas, revealed in an upcoming episode of…

23 minutes ago

Australia Urges US-Iran to Return to Talks Amid Stalled Negotiations

Australia Urges US-Iran Return to Talks Australian Foreign Minister calls for resumption of negotiations between…

1 hour ago

Bruno Mars Returns to Stage with ‘The Romantic’ Tour

Bruno Mars kicked off his The Romantic Tour with a sold-out show in Las Vegas,…

1 hour ago

US ‘Looking for Excuse’ to Exit Iran Talks in Islamabad, Says Iranian Media

US-Iran Talks End Without Agreement Diverging accounts have emerged following the conclusion of US-Iran talks…

2 hours ago

‘Euphoria’ Cast Reacts to Season 3 Anticipation Amid Missing Star

Euphoria's third season is highly anticipated this year. The main cast returns, but one key…

3 hours ago