Mohsin Siddiqui (Chief Reporter)
The Federal Board of Revenue (FBR) has laid out a comprehensive strategy aimed at meeting an ambitious revenue collection target of Rs 12.970 trillion for the fiscal year 2024-25. This plan was presented to Federal Minister for Finance and Revenue, Muhammad Aurangzeb, during a detailed meeting held at the FBR Headquarters on Monday.
The meeting, which was chaired by the Finance Minister, was attended by various key figures, including State Minister for Finance and Revenue, Ali Pervez Malik, Chairman FBR, Rashid Mahmood Langrial, and other senior officials of the Board.
During the meeting, Finance Minister Muhammad Aurangzeb took a moment to recognize and appreciate the services of the outgoing Chairman of FBR, Malik Amjed Zubair Tiwana. His contributions, particularly in the budgeting process and the negotiations with the International Monetary Fund (IMF), were highlighted as instrumental in setting a solid foundation for the ongoing fiscal strategies. Minister Aurangzeb expressed his gratitude for Tiwana’s efforts and the significant progress made under his leadership.
As the baton passed to the new Chairman, Rashid Mahmood Langrial, the Finance Minister expressed his confidence in Langrial’s ability to steer the organization towards achieving the challenging revenue goals. Langrial’s appointment comes at a critical time, and his leadership will be pivotal in implementing the FBR’s strategy to enhance revenue collection through digitization and improved operational efficiency.
A key segment of the meeting involved detailed presentations by senior FBR officials. Member Inland Revenue (Operations), Mir Badshah Khan Wazir, and Member Customs (Operations), Ashhad Jawwad, shared insights into their respective areas, outlining the strategies and initiatives planned for the year. The presentations focused on how the FBR aims to leverage digital technologies to streamline operations, reduce inefficiencies, and ultimately meet the revenue collection targets.
The FBR’s strategy for the fiscal year 2024-25 revolves around a robust digitization plan that includes the implementation of advanced data analytics, automation of tax processes, and enhanced taxpayer services. These initiatives are expected to not only improve compliance but also expand the tax base, thereby contributing to the overall revenue target.
The meeting also reviewed the FBR’s performance in the first month of the current fiscal year. The FBR reported a successful start, having exceeded the revenue collection target for July 2024. Against a set target of Rs 656 billion, the FBR collected a net revenue of Rs 659.2 billion. This achievement is particularly notable given that it includes the issuance of refunds amounting to Rs 77.9 billion, demonstrating the FBR’s commitment to ensuring timely refunds to taxpayers.
Breaking down the figures, the FBR collected Rs 300.2 billion under Income Tax, Rs 307.9 billion under Sales Tax, Rs 37.4 billion under Federal Excise Duty, and Rs 91.7 billion under Customs Duty. These numbers reflect a positive trend and provide a strong foundation for the FBR as it continues its efforts to meet the annual revenue target.
While the initial figures are promising, the road ahead is fraught with challenges. The FBR will need to sustain and build upon this momentum to achieve the lofty target of Rs 12.970 trillion for the fiscal year. The digitization strategy, along with other reforms in tax administration, will be critical in overcoming these challenges.
The FBR’s focus on enhancing taxpayer facilitation, improving audit processes, and reducing the informal economy will play a significant role in achieving these goals. Additionally, the collaboration between the FBR and other government agencies will be essential in ensuring a coordinated approach to revenue collection and economic growth.
