The Federal Board of Revenue (FBR) fell short of its revenue target by Rs386 billion during the first half of the fiscal year 2025. The FBR collected Rs5.623 trillion, which was below its target of Rs6.009 trillion. This shortfall was mainly due to lower taxes on imports, slower manufacturing activity, and inflation rates that were lower than anticipated.
In December, the FBR collected Rs1.326 trillion, which was 35% higher than the same month last year. However, this amount still did not meet the set target. Despite the overall shortfall, there was some positive news. Collections from income tax exceeded expectations, showing a strong growth of 29%.
The government has set an ambitious target of Rs12.913 trillion for revenue collection in FY25. However, independent economists believe that this target may be too high and suggest that a more realistic figure would be around Rs12 trillion. This highlights the challenges the government faces in meeting its revenue goals amid economic uncertainties.
