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Federal Board of Revenue’s (FBR) tax collection target is likely to be set at Rs 12.97 trillion against the revised estimates of Rs 9.252 trillion for the outgoing financial year.
The interest and debt payments are estimated at Rs 9.5 trillion in the upcoming budget, sources said. The tax-collecting body wants to pursue fiscal consolidation by bringing down the overall fiscal deficit from over 7.6%, of the outgoing fiscal year, to 6.5% of GDP in the next budget through revenue efforts and curtailing unbridled expenditures.
Moreover, the federal government has allocated Rs800 billion for subsidies in the energy sector.
Federal govt has decided to end unnecessary tax exemptions in the next financial year. Tax exemptions in terms of sales tax, income tax, and customs duties will end, sources said.
The government is planning to increase tax revenue through changes in tax rates. The plan includes an increase in taxes by implementing a sales tax on petroleum products and imposing additional tax on non-filers in the budget of the upcoming financial year.
For the next fiscal year, FBR will increase the scope of taxes to increase collections. Measures will be taken to bring the retail sector into the tax net and to impose additional taxes on the real estate sector. FBR will collect taxes from sectors outside the tax net.
Compared to the outgoing financial year, the new FY will target an additional collection of around 4 thousand billion rupees.
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