Contrary to a massive revenue target set by the government, the Federal Board of Revenue (FBR) seems to have proven its astonishing ineptitude by falling short of the projected target for July and August by Rs99 billion.
\nThis failure, while raising serious concerns about the tax administration\u2019s ability to make up the gaps, adds further credence to a repeatedly-floated demand for a \u201crealistic\u201d tax target.
\nTo add to the FBR\u2019s worries, trading unions across the country are determined in their refusal to pay advanced taxes out of registration, which in turn, means a continued reliance on indirect taxation.
\nThe dismal numbers speak for themselves. Although the government\u2019s hands are increasingly tied by pressure to sort out the house from the likes of the IMF, it cannot be denied that raising such high expectations from an institution that has yet to get over 3.2 million traders under the tax net was like trying to pilot a flight that was doomed from the beginning.
\nThe root causes behind this monumental failure are glaringly evident. The lack of a coherent long-term tax collection plan, leading to unsustainable revenue generation, needs to be prioritised before trying to squeeze more out of existing taxpayers.
\nDelays in tax assessment and collection, combined with rampant corruption and bureaucratic red tape, have severely undermined the FBR\u2019s ability to fulfil its targets. This level of incompetence is simply unacceptable and demands urgent redress.
\nLet\u2019s not forget the impact of economic challenges and external factors on tax collection. The FBR cannot force people to pay taxes when they have nothing to offer, thanks to inflation and measly economic prospects. The fact of the matter remains that unless more people are added to the tax net, there\u2019s a limit to what the existing filers can contribute to the system.<\/p>\n","protected":false},"excerpt":{"rendered":"
Contrary to a massive revenue target set by the government, the Federal Board of Revenue (FBR) seems to have proven its astonishing ineptitude by falling short of the projected target for July and August by Rs99 billion. This failure, while raising serious concerns about the tax administration\u2019s ability to make up the gaps, adds further […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":{"0":"post-428753","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-editorial"},"yoast_head":"\n