ISLAMABAD                  -             The Federal Board of Revenue (FBR) would have to collect Rs2.5 trillion in just four months to achieve the annual revised tax collection target during ongoing fiscal year, which seems challenging.

The FBR is struggling to meet the revised tax collection target of Rs5.27 trillion during current financial year.

Earlier, the target was downward revised to Rs5.55 trillion after FBR was continuously failing to achieve the monthly tax collection targets.

The FBR had so far faced massive shortfall of Rs484 billion in eight months (July to February) of the year 2019-20. According to provisional figures, the FBR has collected Rs2.725 trillion during this period against the target of Rs3.209 trillion.

Pakistan had already told the International Monetary Fund (IMF) that it could not achieve the revised target.

Pakistan wanted to fix the tax collection target at around Rs4800 billion for the current fiscal year.

However, the IMF had turned down the government’s request of reducing the tax collection target for the year fiscal year.

The FBR’s performance had badly affected after chairman FBR Shabbar Zaidi went on leave two times in last two months.

FBR had faced revenue shortfall of Rs104 billion in the month of January, as it collected Rs321 billion in January as against the target of Rs425 billion.

Later, the FBR had witnessed a shortfall of Rs99 billion in February by collecting Rs318 billion against the target of Rs417 billion for that month.

Shabbar Zaidi went on an indefinite leave in the start of February. Shabbar Zaidi has extended his leave due to medical reasons.

However, it is not clear when will he resume his duties. The government had appointed Nausheen Javaid Amjad, BS-22 officer of Inland Revenue, as acting chairman FBR.

The government is indecisive to appoint a new chairman FBR at the time when FBR is struggling to achieve the revised tax collection target during the ongoing financial year.