ISLAMABAD: With the aim to achieve Rs3100 billion revenue collection target, the government is likely to impose additional taxes worth Rs200 billion in the upcoming budget for fiscal year 2015-16.
The government would withdraw tax exemptions worth Rs103 billion in the budget and would impose new taxes worth Rs100 billion. The federal government has set Rs3100 billion revenue collection target for the upcoming fiscal year, which would be 19 percent higher than expected collection of Rs2605 billion of the outgoing financial year 2014-15.
The FBR had accumulated Rs1975 billion during first ten months (July to April) of the current fiscal year 2014-15. The FBR has to collect Rs716 billion during remaining two months (May and June) to reach the revised target of Rs2691 billion. The government had introduced five mini budgets within few months to generate additional revenue.
Federal Board of Revenue (FBR) Chairman Tariq Bajwa on Wednesday informed the National Assembly’s Standing Committee on Finance and Revenue that new taxes would be imposed on tax-free areas. The tax rate for the non-compliant persons would likely to increase and might decrease in some cases for the complaint persons, he added.
The FBR chairman blamed the declining oil prices, sluggish growth in industrial sector and imports for the lower revenue collection made during outgoing year. Similarly, the country’s GDP growth and inflation remained lesser than the projection, which affected the revenue collection, he added. The country’s GDP remained at 4.2 percent against the target of 5.1 percent and inflation at 4.8 percent as compared to the target of 8 percent.
