The Federal Board of Revenue encounters a revenue deficit of Rs110 billion in April 2025.
The FBR has achieved a remarkable 30% year-over-year increase in income despite this deficit, with total receipts from July to April over Rs 8,500 billion.
With a target of Rs 10,130 billion for the period, the income gap from July to April is Rs 815 billion. Rashid Mahmood Langrial, the head of the FBR, attributed the progress to a significant increase in tax receipts, specifically in income tax and sales tax.
Officials report that income tax receipts surged by 44 percent, whereas sales tax collections grew by 17 percent.
Federal Excise Duty and Customs Duty both exhibited remarkable growth rates of 31 percent.
The FBR has set a target to increase the tax-to-GDP ratio to 11.2% for the upcoming fiscal year.
Sources indicate that virtual negotiations are occurring between Pakistan and the International Monetary Fund (IMF) in preparation for the budget.
The FBR’s target will be determined based on the estimated GDP size for the next fiscal year. For the current fiscal year, a tax-to-GDP ratio of 10.6% is anticipated, with the ratio already approximating 10.8%, sources indicated.
Sources revealed that an agreement has been reached to raise the tax-to-GDP ratio by more than 0.5% for the next fiscal year. For the fiscal year 2025-26, the FBR’s target will be established according to the anticipated GDP magnitude.
