ISLAMABAD: The Federal Board of Revenue (FBR) has undertaken a number of measures to increase revenue from direct taxes to bring equity and fairness.
These include measures broadening of tax base, withdrawal of concessions/exemptions, differential taxation for non-filers, the conversion of CNIC into NTN for individual taxpayers and several others.
Sources told Customs Today that through publication of National Tax Directory and parliamentarian tax directory, end to end automation by capturing all the relevant transactions and simplification of business processes for the benefit of taxpayers, efforts are being made to increase the share of direct taxes in overall tax collections by the FBR.
The source said that with the help of all these initiatives, tax revenue collection from direct taxes has increased substantially and will increase in future too.
In this regard, a comparative overview of the share of direct and indirect taxes collected by the FBR in terms of contribution in overall federal taxes sounds healthy due to ever increasing share of direct taxes as well as it indicates that the reliance on indirect taxes is reducing to a great extent.
Furthermore the source added that due to these initiatives the tax-GDP ratio improved from 9% to 9.5% as well as tax collection grew up 15% as compared to Previous Financial Year in in the fiscal year 2014-15.
