The Federal Board of Revenue (FBR) has decided to impose Rs. 50 billion worth of sales tax on petroleum products in October 2022 in case the tax machinery fails to meet the monthly target of Rs. 683 billion set for the current month.
Sources told Propakistani that the following contingency revenue measures of Rs. 260 billion have been agreed with the International Monetary Fund (IMF):
- Sales tax on petroleum products (at least Rs. 50 billion)
- Excise duty on Sugary drinks (Rs. 60 billion)
- Federal Excise Duty (2 rupees per stick) on Tier I-Tier II cigarettes (Rs. 150 billion)
- Withdrawal of sales tax exemptions to exporters
The measures would be enforced if the FBR fails to achieve the assigned revenue collection target for September 2022, sources maintained.
So far, the FBR has collected Rs. 380 billion in revenue collection till September 19, 2022, and the Board will have to collect Rs. 303 billion in the remaining 11 days of the ongoing month for meeting the fixed target of Rs. 683 billion for September 2022.
The FBR had provisionally collected net revenue of Rs. 489 billion during August 2022 against the target of Rs. 483 billion, reflecting an increase of Rs. 6 billion.
During the first two months of July and August of 2022-23, the FBR has collected Rs. 948 billion against the assigned revenue collection target of Rs. 926 billion. So far the Board has surpassed the assigned target by Rs. 22 billion in the current fiscal year 2022-23. The final decision on the implementation of the contingency measures would be taken by end of the current month, sources said.
The government has committed to IMF to trigger contingency measures at the earliest signs of fiscal program underperformance, including:
- an immediate increase in GST on fuel, as a prelude to reaching the standard rate of 17 percent;
- further streamlining of GST exemptions including on sugary drinks (Rs. 60 billion) and other unwarranted exemptions such as those benefiting exporters; and/or
- increasing Federal Excise Duty on Tier-I and Tier-II cigarettes by at least Rs. 2/ stick with immediate effect to raise at least another Rs. 120 billion in revenue.
As I see, the govt has only two policies for all economic issues
1- F**k common man to extort money.
2- If money is required, go back to first policy.
If FBR does a poor job, go to above policy.
If IMF ask for more fiscal space, go to above policy.
Govt need more money, do the same.
May Allah save us, our politicians are working hard to make our lives miserable.
I totally agree with you, if the FBR is making so much tax revenue than why don’t we see our system change? no proper roads, no education, no health and after that many people still face immense hunger crisis in the rural areas. Really disappointed to see the country falling in the foot of IMG.
سارے ڈاکو اکھٹے ہو کر ملک کو تباہ کر رہے ہیں کسی کو ملک کی کوئی فکر نہیں ہے غریب مر رہا ہے آج تک آئی ایم ایف نے کہا کے امیروں کی تنخواہیں کم کرو ان کی شاہ خرچیاں ختم کرو
وہ اصل میں اس ملک کی عوام کو اور اس ملک کو ختم کرنا چاہتا ہے حکمرانوں نے ویسے بھی ملک لوٹ کر بھاگ جانا ہے
Their target is to reduce population by 20 million in the next 2-3 months by way of hunger and poverty elevation for common men to either be dead of hunger or by suicide. Need to throw these puppets out of govt. sooner …
Pakistani politicians and Organizations have lost their minds.
Total tax collection by FBR * 2 equals the money the corrupt bureaucrats collect for them selves. Incharge taxes this ration will become FBR * 3.