FBR meets revenue collection target
KARACHI: The federal Board of Revenue (FBR) collected Rs3.104 trillion in taxes in fiscal year 2015/16, the finance ministry said on Friday, the first time it has met its tax revenue target in a decade.
Last year, the government collected Rs2.588 trillion in taxes but missed its target by 9.0 percent.
Tax collection has been one of the biggest challenges facing successive governments who have promised to rein in tax evaders but faced fierce resistance to change, including from the many politicians and businessmen believed to be among evaders.
The inability to raise tax revenue has constrained government spending, depriving schools and hospitals of funds, exacerbating a power crisis and causing widespread hardship in the country.
Tax revenue for fiscal year 2015/16 is the highest in the country’s history, according to the finance ministry.
This represents a 60 percent increase in the last three years, representing an average increase of 20 percent per annum.
Total tax collection goes to the provinces to spend on education, health and other sectors.