Tag: tax revenue

  • Rashid Mahmood’s appointment as FBR chairman sparks controversy over overlooked senior officers

    Rashid Mahmood’s appointment as FBR chairman sparks controversy over overlooked senior officers

    The recent appointment of Rashid Mahmood as Chairman of the Federal Board of Revenue (FBR) has ignited debate, as it appears that a number of senior FBR officers were bypassed for the role.

    According to sources, Mahmood’s appointment has overlooked 24 senior officers in the field and 6 at the FBR headquarters, highlighting concerns over the lack of a seniority-based appointment process at the FBR—a stark contrast to other key institutions.

    Further sources reveal that Members of Customs Operations are currently on extended leave, and many senior officers are absent, which points to potential inefficiencies within the department

    Notably, Mahmood’s predecessors, including Amjad Zubair Tawana, Asim Ahmed, and Muhammad Ashfaq Ahmed, were also appointed despite more senior officers being available, raising questions about the appointment criteria.

    The timing of this appointment is particularly critical as the government faces a daunting tax target of Rs12.31 trillion for the coming 11 months. According to Mettis Global, if revenue collection falls short, even by a month or two, achieving this goal will be increasingly difficult.

    In addition to these challenges, the new chairman will need to navigate ambitious revenue collection targets and oversee essential system digitisation efforts.

  • FBR collects Rs5.15 trillion in taxes in less than eight months

    FBR collects Rs5.15 trillion in taxes in less than eight months

    The Federal Board of Revenue (FBR) has revealed that it has achieved a remarkable milestone by collecting revenue amounting to Rs5.15 trillion from July 2023 to mid-February 2024.

    This represents a substantial 30 per cent increase compared to the same period in the previous fiscal year, according to an official press release.

    The report indicates that the growth in tax revenue is attributed to a comprehensive strategy employed by the FBR, with a keen focus on both domestic and import taxes.

    Tax refunds during this period witnessed a substantial 28 per cent growth, further contributing to the positive financial trajectory.

    A breakdown of the month-wise revenue collection for the period from July 2023 to January 2024 reveals that overall growth in domestic taxes reached an impressive 40 per cent. Concurrently, import duty and related taxes experienced a significant uptick of 16 per cent.

    The surge in revenue collection aligns with the revival of the Gross Domestic Product (GDP) and increased scrutiny of FBR’s collection processes.

    However, growth in import taxes faced challenges, primarily due to downward adjustments in import tariffs over the years and recent restrictions on import licences imposed by the State Bank of Pakistan to address balance of payments concerns amid foreign exchange constraints.

    The report acknowledges that revenue collection from imports incorporates the impact of improvements in import valuations, resulting in an additional Rs151 billion in collections.

    Additionally, the anti-smuggling drive witnessed a substantial 69 per cent growth in the fiscal year compared to the previous year (FY 22–23).

    Despite these achievements, concerns were raised regarding the decline in the growth of import taxes. This decline is attributed to two main factors: the gradual reduction in import tariffs and recent restrictions on import licenses.

    The need for continued efforts in anti-smuggling activities was emphasised, particularly in Baluchistan, where the customs force currently consists of only 378 personnel.

    Strengthening the enforcement efforts by increasing personnel in this region was suggested as a potential solution.

    The report concludes on a positive note, highlighting that the revenue mobilisation from domestic taxes now accounts for over 64 per cent of the total revenues collected in the current financial year.

    Simultaneously, the share of import taxes has decreased to 36 per cent, marking a significant shift from the 50 per cent share observed just three years ago. This indicates a positive trend in the diversification of revenue sources for the FBR.

  • FBR misses July 2023 revenue target by Rs2 billion, collecting Rs532 billion in taxes

    FBR misses July 2023 revenue target by Rs2 billion, collecting Rs532 billion in taxes

    The Federal Board of Revenue (FBR) has announced that the tax revenues collected for the month of July 2023 amounted to Rs532 billion, slightly falling short by Rs2 billion of the target set for this period.

    This figure reflects a noteworthy increase of 15 per cent year-on-year, compared to the Rs462 billion collected in July 2022.

    However, when examining the data on a monthly basis, there was a significant decline of 43.52 per cent as the tax revenue for July 2023 dropped compared to the Rs942 billion collected in the previous month.

    Looking ahead, the government has set a revenue collection target of Rs9.415 trillion for the fiscal year 2023-2024.

     It is worth recalling that in the previous fiscal year 2022-2023, the FBR failed to meet its annual budgetary collection target by approximately Rs522 billion, as it collected Rs7.118 trillion by June 27, 2023, in contrast to the projected amount of Rs7.64 trillion for the entire fiscal year.

  • Telecom operators, govt suffer major revenue losses due to mobile internet shutdown

    Telecom operators, govt suffer major revenue losses due to mobile internet shutdown

    According to reliable sources, the suspension of mobile broadband services has had a devastating impact on the economy in Pakistan. Telecom operators have incurred a revenue loss of approximately Rs820 million, while the government has lost around Rs287 million in tax revenue.

    The suspension has also caused significant losses for digital app users, such as Careem, InDrive, and FoodPanda, as well as brought digital payments to a halt. The situation has caused widespread inconvenience and hardship for the general public, necessitating the immediate attention of the relevant authorities to resume data services.

    Furthermore, social media platforms like Facebook and Twitter remained partially or fully suspended on the second day. Jazz CEO, Aamir Ibrahim, expressed his dissatisfaction through a tweet, emphasising that shutting down the internet is not a solution to any problem, but instead, it creates more problems than it solves. He stated that the impact on the economy is quantifiable, but the inconvenience to the people is incalculable.

    According to Brecorder, Muhammad Zohaib Khan, the Chairman of Pakistan Software Houses Association (P@SHA), strongly criticised the indiscriminate blockage of internet services in Pakistan due to the emergent political situation. He condemned the mindless and consultation-less decision and highlighted that the IT industry has come to a standstill since Tuesday evening.