FBR loses Rs20 billion due to early market shutdowns

Pakistan’s tax collections face new pressure, with officials warning of Rs15-20 billion losses.

Early market closures due to economic woes and energy cuts slow business in major cities. The National Assembly Standing Committee on Finance heard this briefing this week. High oil prices and blackouts limit business. Oil prices surged 42% in the past months. This leads to reduced consumer expenditure, retail growth and tax collection. Tax targets are missed by the Federal Board of Revenue.

Spiking world oil prices increase transport, electricity and business costs. Shops close early to cut costs and blackouts. Also, RLNG and furnace oil shortages could lead to more load shedding in Islamabad and other urban areas. Reduced hours lead to less revenue. FBR officials fielded strong criticism from lawmakers over shortfalls. Tax concessions don’t increase revenue, despite business woes. Committee Chairman Syed Naveed Qamar said poor enforcement leads to heavy borrowing.

Finance Ministry officials said inflation and uncertainty cause losses. Rising imports, sluggish growth and low purchasing power increase disparities. But the economy remains on despite hurdles. Parliamentarians called for tougher FBR oversight and reforms. They sought broadening tax collections, enforcements and avoiding unfair taxes hitting all. Looking ahead, these measures will help stabilise inflows and pressure.