Islamabad: The federal government and a delegation of the International Monetary Fund’s review mission recently agreed to revise the tax collection target previously announced by the Federal Board of Revenue (FBR) for the tax year 2019-20, a new source reported. As per officials, the international institution proposed a decrease of PKR 233 billion in the proposed revenue target of PKR 5,503; asking the taxation to focus on collecting only PKR 5,270 billion for the current tax year.
Previously, the FBR had requested a PKR 300 billion reduction in its annual tax collection target. But, the IMF review mission set the figure at PKR 233 billion. This revision is based on the IMF’s assumption that the import compression would keep on influencing the FBR’s tax collection efforts in the coming months of this fiscal year as it has dropped by USD 400 million in October 2019.’
An FBR official said that 50% of the tax revenue is generated at the import stage. He further said that customs collection at import stage had increased by 17-18%, while 30-32% income tax (withholding and general sales tax) collected at import stage had contributed to an overall increase of 40-50% collection target.
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