The Federal Board of Revenue (FBR) has reported a substantial shortfall of over Rs. 101 billion in tax collections for the first quarter of the fiscal year 2024-25. The FBR collected Rs. 2,438 billion against the target of Rs. 2,539 billion set for the period from July to September.

Despite this shortfall, the FBR successfully met its monthly target for September 2024, collecting Rs. 996 billion in gross revenue, surpassing the target of Rs. 985 billion.

The FBR has received 3.6 million income tax returns for the tax year 2024, a significant increase from the 1.9 million returns filed during the same period last fiscal year. However, 1.3 million of these returns were from nil-filers. In comparison, the total number of returns received for the tax year 2023 was 6.2 million. Alongside the returns for 2024, the FBR collected Rs. 95,708 million in taxes.

From July 2023 to date, 825,257 individuals have registered, including 497,092 nil-filers. In contrast, from July 2024 to date, 340,473 individuals have registered, with 237,237 being nil-filers.

To address the shortfall and meet the ambitious tax collection target of Rs. 12,915 billion for the fiscal year, the government plans to introduce an Ordinance with enforcement measures targeting non-filers and nil-filers. This move follows the prime minister’s approval of the FBR’s transformation plan, which includes abolishing the non-filer category and restructuring non-registered business entities.

The FBR had already faced a shortfall of Rs. 98 billion in the first two months of the fiscal year, with net collections at Rs. 1,456 billion against a target of Rs. 1,554 billion. The advance tax installment due in September, primarily paid by the corporate sector and banks, was a critical component of the month’s revenue..