ISLAMABAD: The Federal Board of Revenue (FBR) is likely to increase federal excise duty (FED) and regulatory duty on cigarettes and other items in order to overcome Rs 40 billion shortfall in revenue collections and fulfill the requirements of the International Monetary Fund (IMF) for next tranche of $502 million, sources said.
They said that FBR would increase duty rate on butter, tomatoes pastes, chocolates and guava, adding that anti-dumping duties would also be imposed to meet the shortfall.
It may mention here that federal government has already increased 5 percent regulatory duty on 282 luxury items in the current budget owing to the conditions of the IMF.
It is also important to mention here that FBR had remained failed to achieve the Rs 640 billion revenue collection target during first quarter of current fiscal year 2015-16. Therefore, IMF emphasized the government to impose new taxes or to increase existing tax rates.
