The autonomous growth of the Federal Board of Revenue (FBR) revenues for 2023-24 is projected at Rs. 9,000 billion, reflecting a growth of 26.1 percent in revenue collection during the new fiscal year.
The FBR has compiled a report on tax projections for 2023-24.
During FY2023-24, given that the prevailing downturn in the economy is reversed, a higher growth rate is expected in FBR revenues, and it is estimated that autonomous growth will reach around Rs. 9,000 billion. However, this autonomous growth is expected to be further reinforced by policy/administrative measures to be taken in due course.
FBR taxes are generally buoyant and there is a potential for achieving growth in tax revenues provided that macroeconomic indicators perform well.
According to the FBR’s report, the FBR revenue collection has shown a steady trend during the last six years as a percentage of GDP. The Tax-GDP computations were updated due to the rebasing of National Accounts in early 2022.
The ratio remained in the range of 9.6 percent to 11.4 percent, however, due to rebasing a substantial impact has been noted as it plummeted to 9.2 percent during FY 2021-22 instead of 11.4 percent.
The report further revealed that traditional methodology has been adopted to forecast FBR revenues for 2023-24. The autonomous growth has been applied on base year’s (FY2022-23) collection for respective taxes, which estimates an increase of Rs. 1,861 billion for 2023-24. This amount has been added in the expected collection of 2022-23 thus arriving at an estimate of Rs. 9,000 billion.
Tax-wise buoyancy estimates are calculated by using historical tax collection and multiplying with the respective tax base data. In this report, the buoyancy estimates have been calculated on the data of tax collection, GDP, large-scale manufacturing (LSM), and Imports for the years 2002-03 to 2021-222 .
GDP Gross value addition at Current Factor Cost at market prices (inclusive of Taxes less subsidies) has been used for measuring the Buoyancy estimates, the FBR report added.
You have imposed stupid taxes direct and indirect tax on everything thing all the money going to curupt politicians and bureaucrats cypering of money into their own bank accounts….. Corrupt Pakistan zindabad.