The Federal Board of Revenue (FBR) missed its monthly tax target for August by Rs50 billion, even as the salaried class faced a sharp increase in income tax payments.
According to official figures, FBR collected Rs901 billion in August, falling short of the Rs951 billion target. For the first two months of the fiscal year, total collections stood at Rs1,663 billion, compared to the target of Rs1,698 billion, leaving a Rs35 billion shortfall. The government has set an ambitious goal of Rs14,131 billion for the current fiscal year.
Data shows the salaried class contributed significantly more this year. Between July and August, employed individuals paid Rs85 billion in income tax, up from Rs70 billion in the same period last year. This marks a 21% increase, with an additional Rs15 billion collected in just two months.
Last year, salaried workers contributed Rs555 billion in income tax. This year, FBR has already recorded Rs188 billion in additional payments from this category.
A closer breakdown reveals non-corporate employees paid over Rs41 billion, corporate employees contributed Rs20 billion, provincial government workers paid Rs10.5 billion, and federal employees contributed Rs7.6 billion. Meanwhile, a new tax on big pensioners brought in only Rs180 million over the two-month period.
The property sector also played a role in tax revenues. FBR reported a 92% surge in tax collection from plot sales, reaching Rs28 billion. However, taxes from property purchases dropped 12%, totaling Rs13 billion.
While higher contributions from the salaried class and real estate sales have boosted revenue, the overall shortfall indicates challenges ahead for the FBR.
Meeting the annual target of Rs14,131 billion may require stronger enforcement and additional revenue measures in the coming months.
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