LAHORE: The Federal Board of Revenue (FBR) is facing unprecedented challenges in meeting its monthly tax collection targets. According to sources, only a meager 43% of the target has been achieved in the first 18 days of the month, which is rather concerning for the taxation authorities.
As per details revealed by ARY News, a communication was issued by the FBR headquarters to the Chief Commissioner of Corporate Regional Tax Office. This letter specifically mentioned concerns over the lackluster performance in tax collection so far.
Experts predict that if the current trend persists, there might be a significant shortfall in the FBR's tax collection for the current month. The implications of such an event can be far-reaching and even have a detrimental impact on the country's economy.
Moreover, this issue will put immense strain on the authorities responsible for finding avenues to generate additional revenue for the state exchequer. It remains to be seen whether the concerned officials would be able to chalk out an effective plan to achieve the monthly target and stave off any long-term financial shortcomings.
An earlier review, led by the FBR authorities, was held to assess the gap between the target and the real-time revenue collection. However, this did not yield the expected results, compelling FBR officials to think outside the box to mitigate the crisis.
There have also been warnings from the tax authorities regarding stricter audits and checks on tax evaders but success seems far off. Until there is a full-scale overhaul of the tax mechanism or an uptick in compliance, chances are we may see more such unfortunate statistics emerging. The federal government has been optimistic about their budget revenue targets in the coming fiscal year; however, one may be skeptical about the feasibility of such claims based on current trends.