The Federal Board of Revenue (FBR) is anticipated to encounter a revenue shortfall of Rs. 90 billion for October 2024, according to sources. The FBR’s target for this month is set at Rs. 980 billion, a figure that currently seems unattainable for the regulator. This follows a recorded shortfall of Rs. 92 billion in the first quarter of FY25, bringing the total estimated shortfall from July to October to Rs. 180 billion.

In response to the shortfall, the FBR has drafted an ordinance aimed at enforcing new tax measures to boost revenue collection.

The International Monetary Fund (IMF) has requested a detailed report from the FBR regarding the revenue shortfall. As part of the IMF’s conditions, the sales tax exemption on the purchase and sale of tractors has been reduced to 14 percent. Furthermore, the proposed ordinance is expected to eliminate an additional 4 percent sales tax exemption to increase the FBR’s tax revenue.