ISLAMABAD - The government would revise downward the annual revenue collection target of Rs 2.81 trillion set for the current financial year 2014-15 due to the devastating floods in different parts of the country that damaged the crops, houses and other infrastructure.
After discussions with the officials of the Finance Ministry and Federal Board of Revenue (FBR), The Nation has learnt that government would revise the tax collection target due to the floods. The target was termed unrealistic by the economists to achieve at the eve of budget, as they were of the view that government would not achieve its target.
Eminent economist Dr Ashfaque Hassan had several times stated that government could not achieve more than Rs 2.6 trillion during present fiscal year as compared to the target of Rs 2.81 trillion.
However, the current unprecedented floods in different parts of the country have left the government with no other option than to revise its revenue target. “Keeping in view the devastating floods in the country, we can say that tax target will be revised. The floods have certainly put negative impact on the overall economic situation of the country, as floods and infrastructure have been destroyed”, said a senior official of the Federal Board of Revenue.  However, he added that government would likely revise the target after ending of the first quarter (July-September) of the ongoing financial year.
Meanwhile, the FBR said that they are working to achieve the annual target of Rs 2.81 trillion and the tax department has performed well in this regard so far. “We are on track regarding collecting taxes in the so far period of the current fiscal year”, said Shahid Hussain Asad, spokesperson of the FBR, while talking to The Nation on Tuesday.
Shahid Hussain Asad, who is also senior member Inland Revenue Service FBR, said that tax department had surpassed the revenue collection targets during first couple of the months (July and August) of the present financial year. Meanwhile, the FBR has collected Rs 139 billion during 22 days of the ongoing month of September as against Rs 110 billion of the corresponding period of the previous year, showing a growth of over 26 percent.
Meanwhile, the FBR had collected Rs 319 billion during first two months (July and August) of the ongoing financial year 2014-15, which is 11 percent of the overall revenue collection target. The government had set a mammoth revenue collection target of Rs 2.81 trillion for the current fiscal year, which is 24 percent higher than the accumulation of the previous year that was Rs 2.26 trillion. 
Sources in Finance Ministry informed that government would have to make changes in entire budget if it revises the tax collection target to maintain the fiscal deficit within limit of 4.9 percent of the GDP. He added that Finance Ministry would make change once the report of the damages of floods finalised.