Home »Taxation » Pakistan » Revenue measures to enable FBR to project Rs 4 trillion target

  • News Desk
  • May 25th, 2017
  • Comments Off on Revenue measures to enable FBR to project Rs 4 trillion target
The imposition of five percent Regulatory Duty (RD) on imported items (subjected to RD), continuation of Super Tax, enhancement in withholding tax rate for non-filers, administrative/enforcement measures and massive changes in import duties would enable the Federal Board of Revenue (FBR) to project around Rs 4,007 billion as revenue collection target for 2017-18.

Sources told Business Recorder here on Wednesday that the rates of sales tax on petroleum products - major revenue spinners - would not be enhanced in budget (2017-18). Sales tax rate of essential commodities like sugar would not be changed in the budget. However, tax rates may be rationalised on some excisable commodities. On the sales tax side, there is no change in the standard rate of sales tax, but sales tax would be revised on a few items.

The major revenue measure would be widening the gap of withholding tax between filers and non-filers. There is a possibility that tax on dividend income, profit from debt, securities and investment in bonds may be increased for non-filers. Major chunk of revenue has been estimated from changes in duty structure and regulatory duties at the import stage.

According to sources, if Super Tax has been extended for another year, it would also be a key revenue generation measure. So far, the FBR has provisionally collected Rs 2,518.5 billion during July-April (2016-17) against Rs 2,346 billion in corresponding period of last fiscal year (2015-16), reflecting an increase of Rs 172 billion. The FBR is facing revenue shortfall of Rs 150 billion during the first ten months of 2016-17.

Following provisional collection of Rs 2,518.5 billion during July-April (2016-17), tax machinery has to collect Rs 1,102.5 billion in the remaining period of May-June (2016-17) to meet annual target of Rs 3,621 billion for 2016-17. On monthly basis, the FBR will have to collect Rs 551.25 billion per month to reach the budgetary target of Rs 3,621 billion for 2016-17.

According to sources, the FBR will be able to reach the figure of Rs 3,500 billion for outgoing fiscal year (2016-17) against the assigned revenue collection target of Rs 3,621 billion for 2016-17. Thus, the annual target is expected to be slashed from Rs 3,621 billion to Rs 3,500 billion for outgoing fiscal year (2016-17), reflecting a difference of Rs 121 billion.



the author

Top
Close
Close