The Federal Board of Revenue (FBR) has suffered historic shortfall of Rs 456 billion as provisional revenue collection in 2012-13 stood at Rs 1,925 billion against budgetary target of Rs 2,381 billion. Sources told Business Recorder on Sunday that the FBR's provisional revenue collection stood at Rs 1,925 billion during July-June (2012-13).
The FBR's tax collection now stands at Rs 1,925 billion till Sunday night against the twice revised target of Rs 2,007 billion so the FBR has been missing out its revised target with massive margin of Rs 82 billion in outgoing financial year. It is expected that the provisional revenue collection in 2012-13 would cross Rs 1,929 billion till Monday (July 1).
As compared to the budgetary target of Rs 2,381 billion, the tax machinery had estimated to reach the figure of Rs 1,952 billion, reflecting a massive shortfall of Rs 429 billion. However, the actual revenue collection is far less than the expected collection of Rs 1,952 billion, by the end of current fiscal.
Sources said that the target of Rs 2,475 billion needs to be reviewed in view of actual revenue collection during 2012-13. The revenue collection target of Rs 2,475 billion is totally unrealistic for 2013-14 in view of provisional revenue collection of Rs 1,925 billion during 2012-13.
If the tax machinery is unable to meet the target of Rs 2,381 billion for 2012-13, the revenue collection target of Rs 2,475 billion for 2013-14 is unrealistic. Keeping in view current pace of revenue collection, the next fiscal year's target of Rs 2,475 billion seems very ambitious.