FBR Needs to Collect Rs. 7.4 Trillion in Taxes Amid Import Contraction & Rising Inflation

The Federal Board of Revenue (FBR) requires growth of 21.5 percent in revenue collection to meet the target of Rs 7.4 trillion set for 2022-23 despite import contraction and rising inflation.

The FBR report on the tax collection target (2022-23) said that the revenue target for 2022-23 has been fixed at Rs. 7.470 trillion which demands a growth of 21.5 percent over the collection of Rs. 6.148 trillion made during 2021-22.

In absolute terms, around Rs. 1,322 billion additional revenues are to be collected by FBR in 2022-23 to meet the target.

The target for 2022-23 is challenging given the fact that the government is focusing on controlling the current account deficit and rising inflation which would result in import contraction and a slowdown in the overall GDP growth.

Nonetheless, FBR is confident that its team has the ability and the resolve to accomplish this gigantic task as an upward revised target has already been achieved for the financial year ended on 30-6-2022, FBR said.

To achieve the target several efforts are being made at policy as well as operational levels. There is a focus on enhanced use of technology and a policy shift towards taxing the high-income groups through direct taxation such as the imposition of Super Tax, Poverty Alleviation Tax, revision of individual tax slabs including salaried class, increase in FED on international air travel, increased tax on luxury motor vehicles etc.

Keeping in view the past performance of FBR and the revenue measures taken during the current budget there are high hopes of achieving the tax target for FY 2022-23, FBR added.