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

FPCCI President Welcomes DLTL Notification, Thanks Government

Atif Ikram Sheikh, President of Pakistan's Federation of Chambers of Commerce and Industry (), has…

17 minutes ago

Prime Minister Sharif Visits Qatar for Invited Trip in February 2026

Prime Minister Muhammad Shehbaz Sharif is set to undertake an official visit to Qatar from…

23 minutes ago

Shehbaz Sharif to Visit Qatar for Trade and Energy Talks

Prime Minister Shehbaz Sharif is set to embark on a significant diplomatic journey next month…

30 minutes ago

Rider Strong Explains Why He Opposed Matthew Lawrence’s Boy Meets World Role

Rider Strong, the 46-year-old American actor and director who played Shawn Hunter in Boy Meets…

37 minutes ago

Trump’s Iran Strategy Mired in Uncertainty

In recent weeks, President Donald Trump has escalated his threats against Iran, prompting fresh concerns…

44 minutes ago

Winter Storm Forces Northeastern Schools Closures, Emergencies Across US

This powerful winter storm has left an indelible mark on northeastern United States, with snow,…

53 minutes ago