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

Andrew Remains Key Royal Despite Charles, William’s Distance

Former Prince Andrew remains a significant figure within the Royal family despite senior royals like…

17 minutes ago

Hyderabad Police Shoots 4 Suspects in Robbery Encounter, Third High Death Count in Three Years

Hyderabad police shot dead four suspects on Saturday during an encounter. The incident is the…

24 minutes ago

Hooker Shares Maps Claiming Wife’s Missing Location in Bahamas

Brian Hooker shared maps with friends and CBS News in days following Lynette's disappearance from…

1 hour ago

James McAvoy Addresses Hollywood’s Aging Fears, Says He’s Doing Okay

James McAvoy, renowned for starring in several franchises, discusses Hollywood's aging anxieties with host Romesh…

1 hour ago

Scarlett Johansson Highlights Hollywood’s Challenging Early 2000s Era

Scarlett Johansson Reflects on Hollywood's Dark Past In an interview with CBS Sunday Morning, Scarlett…

2 hours ago

Unsafe Punjab School Commute Endangers Children Amid Lack of Transport

Lack of school transport in Punjab raises serious concerns among citizens and parents. Despite Lahore…

2 hours ago