ISLAMABAD – This is probably the first time ever, when monthly taxcollection data is scrutinised and debated within and outside economicscircles. Before this year, monthly tax collection data was reported by themedia, but unlike inflation or items under balance of payment account,monthly tax numbers hardly caught the kind of attention it is receivingthese days. Does anyone know the reason why?
Anyway, before assessing the adequacy of FBR’s collection for 2MFY20, acaveat is worth pointing out. Chairman FBR tweeted from his unverifiedaccount that by the end of August 2019, FBR had collected Rs580 billion,“which is 90 percent of the target of RS644 billion” set for the first twomonths. Contrary to this tweet, this newspaper reported that the two-monthcollection stood at Rs576 billion whereas two other media houses put thenumber at Rs578 billion and Rs574 billion.
Since Shabbar says he is in serious mood for various kinds of reforms atthe FBR, he would be doing a great service if he tasks his team toperiodically update FBR’s publications and set up a tax data portal withtax collection, targets, tax gaps, tax potential and other relevantinformation such as sectoral studies or studies relating to smuggling, asdoes the central bank through its website.
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Going by Shabbar’s tweet, Rs580 billion is about 10.4 percent of totalcollection of Rs5,555 billion budgeted for this fiscal year. This is lowerwhen compared to two-month performance in the last two years. Then again,this year’s number (10.4%) is not entirely comparable with the last fewyears because budgeted tax target is huge this year, whereas GDP growth isslower than yesteryears, and there have been some new tax measures – suchas removal of sales tax zero rating, notifications to doctors, schools andwhat not.
