Daily Times

Federal Board of Revenue (FBR) achieved another milestone by collecting Rs8400 billion tax revenue but also posted shortfall of Rs721 billion during first nine months of current fiscal year 2025.

It reported in media that FBR stated that 26 percent increase was recorded in collection of taxes

on Year-on-Year (YoY) basis while FBR was assigned tax collection target of Rs9167 billion. However, despite increase of 26 percent in collection of taxes, FBR still facing Rs721 revenue collection shortfall.

During the month of March 2025, 25 percent enhancement was witnessed in collection of taxes as compared with the figures of same period of previous fiscal year. FBR was assigned Rs1220 billion tax collection target for the month of March 2025 which was short by Rs120 billion.

In March 2025, 29 percent increase was recorded in tax collection. It is necessary to mention here that the IMF has pressured Pakistan to introduce additional taxes, including levies on nearly all consumable goods, such as medical tests, milk, vegetables, and children’s products. However, despite the new taxes, FBR has struggled to meet its targets in key areas like sales tax, federal excise duties (FED), and customs duties.

Separately, the federal government has fulfilled another condition of the International Monetary Fund (IMF) and approved the establishment of offices for the Director General of Special Measures and two Directors at the Federal Board of Revenue (FBR) Headquarters for coordination with field formations to address tax evasion. A formal notification has been issued in this regard.

According to the FBR notification, the new directorate has been established to identify flaws in the country’s tax system, prevent mis-declaration and under-invoicing, and develop a more integrated strategy to combat smuggling.

The notification further mentioned that these measures will help remove complexities that lead to a decrease in revenues and eliminate unnecessary obstacles in the tax collection process.

The Director General of Special Measures will also coordinate with relevant ministries, divisions, and other institutions on customs-related matters.

The notification stated that under the new directorate, the Director General and Directors will ensure coordination with field offices and provincial authorities, identify flaws in revenue collection, and offer suggestions for resolving them.

Effective measures to stop mis-declaration and under-invoicing will also be proposed. Furthermore, the directorate will assist in organizing special training courses and workshops for Customs Academy Pakistan to raise awareness among Customs officers and staff regarding mis-declaration and under-invoicing.

According to the notification, the entire process will be overseen by the Director General, who will report to the Member Customs Operations. Earlier, IMF Director of Communications Julie Kozack said on Friday that Pakistan will receive $1.3 billion in climate financing.

Speaking at a press conference, Kozack highlighted that discussions with Pakistan covered both the Extended Fund Facility (EFF) and climate financing, Express News reported.

Kozack further mentioned that Pakistan’s 37-month EFF program, approved in September of the previous year, remains in place.