FBR Misses FY25 Tax Collection Target by Almost Rs. 1.5 Trillion
The Federal Board of Revenue (FBR) failed to achieve its tax collection target for the fiscal year ending 2024-25. The gap is one of the largest in a while despite the target being lowered twice.
Big Gap in Tax Collection
As per sources, the initial tax collection target for FY25 was Rs. 12,977 billion. But the FBR will be able to collect just about Rs. 11,500 billion, resulting in a humongous gap of Rs. 1,470 billion.
Even after two revisions of the target:
First Revised Target: Rs. 12,332 billion → Gap: Rs. 832 billion
Second Revised Target: Rs. 11,900 billion → Gap: Rs. 400 billion
Final Numbers So Far
Yesterday, FBR collected Rs. 11,280 billion. It had to collect Rs. 620 billion on the final day to achieve its final target—sources indicate that is unlikely to happen.
At the end of the day, the total collection will probably be Rs. 11,500 billion, short even of the revised lowest target.
Why This Matters
Missing out on such a huge target will mean less revenue for the government to spend on development, debt servicing, and public services. It also hits the confidence of foreign lenders like the IMF.
To prevent such issues in the future, it will be necessary for FBR to improve tax collection mechanisms, broaden the tax base, and tighten corruption, experts say.
