The Federal Board of Revenue (FBR) fell short of its August tax collection target despite imposing Higher Taxes on salaried workers.
According to official figures, the FBR collected Rs901 billion in August. The amount was Rs50 billion less than the target of Rs951 billion. For the first two months of the fiscal year, July and August, the FBR gathered Rs1,663 billion against a goal of Rs1,698 billion. This left a shortfall of Rs35 billion.
The government has set a challenging annual collection target of Rs14,131 billion. To achieve this, the burden on employees has grown. The salaried class paid Rs85 billion in income tax between July and August, compared to Rs70 billion during the same period last year. This shows a 21% increase, or Rs15 billion more in just two months.
In the previous fiscal year, income tax collected from salaried workers totaled Rs555 billion. This year, the FBR expects an additional Rs188 billion. The growing contribution highlights how Higher Taxes are directly affecting salaried employees.
A detailed breakdown shows non-corporate employees paid over Rs41 billion, while corporate workers contributed Rs20 billion. Provincial government staff paid Rs10.5 billion, and federal government employees paid Rs7.6 billion.
Meanwhile, a new tax on large pensioners brought in only Rs180 million during the first two months.
Property-related tax trends also varied. Collections from plot sales surged by 92% to Rs28 billion. In contrast, taxes on property purchases dropped 12%, totaling Rs13 billion.
Experts say that while Higher Taxes on salaries and property sales are boosting revenue, the FBR still faces difficulties in meeting its ambitious annual target. The August shortfall highlights the challenges ahead.
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