The Federal Board of Revenue (FBR) has increased the revenue impact of new taxation measures from Rs. 300-350 billion to Rs. 400-450 billion, reflecting an increase of additional Rs. 100 billion for the next fiscal budget (2022-23).
Sources told ProPakistani that the initial taxation measures were worked out at Rs. 300-350 billion based on budgetary proposals for the next fiscal year for achievement of the Rs. 7,255 billion revenue collection targets for 2022-23.
The revenue target will remain the same for the next fiscal year. However, some major direct taxes measures to increase taxation on revenue-generating sectors have resulted in enhanced projections of new taxation measures. This means that now additional taxation measures of Rs. 100 billion would also be taken through the Finance Bill 2022.
FBR tax collection target for the next fiscal year would be Rs. 7,255 billion, 18.9 percent higher than the Rs. 6100 billion upward revised targets for the outgoing fiscal year taking into account the inflation and GDP growth projections for the next fiscal.
The International Monetary Fund (IMF) projected 7.9 percent inflation and 5.4 percent GDP growth for the next fiscal year by mid to end of January 2022 when the macroeconomic fundamentals were markedly different.
The FBR collected Rs. 4,858 billion net revenue during the first ten months of the ongoing fiscal year (July-April 2021-22) exceeding the target by Rs. 239 billion with 28.6 percent growth over Rs. 3,778 billion was collected in the comparable period of the year before.
To achieve the target in the remaining two months of the current fiscal year, the FBR is required to collect Rs 484.5 billion per month to achieve the budgeted target of Rs. 5829 billion and Rs. 621 billion each month to achieve the upward revised target of Rs. 6100 billion.
