ISLAMABAD: The Federal Board of Revenue (FBR) Tuesday conveyed to Finance Minister Miftah Ismail that revenue measures of over Rs300 billion may be required in the coming budget (2022-23) to meet the next fiscal year’s estimated revenue collection target of Rs7.2 trillion.
Sources told Business Recorder here on Tuesday, the finance minister visited the FBR House and held a meeting with the FBR chairman and senior FBR members. The meeting was attended by FBR Chairman Asim Ahmad and members of the board.
Ismail has directed the FBR to propose the revenue generation measures for the next fiscal year (2022-23). The FBR should expedite the budget preparation exercise, chalk out the budget proposals and discuss the same with me in the next budget meetings, sources referred to the finance minister directing the FBR.
According to sources, senior FBR officials informed the finance minister that the tax machinery will touch the figure of around Rs6 trillion by the end of the current fiscal year.
The FBR has estimated to collect Rs6.8 trillion to Rs6.9 trillion keeping in view the macroeconomic indicators and projected autonomous growth in revenue during 2022-23. Therefore, the revenue measures of Rs300 billion may be required to meet the next fiscal year’s estimated tax projections of Rs7.2 trillion.
The finance minister also inquired about the sudden increase in sales tax refunds after 2019. After rescinding the SRO1125 in 2019, the FBR explained to the finance minister that the refunds suddenly increased in 2020, 2021, and 2022. The reason for the increase in refunds is due to the rescinding of the SRO1125 in 2019.
Ismail also directed the FBR to finalise the comments on the budget proposals submitted by various trade bodies, chambers and federation, and trade associations.
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Ismail visited the FBR (Headquarters), Islamabad this morning to review performance and the ongoing drive for tax compliance by the country’s premier revenue collection organization.
Upon arrival, Asim Ahmad and other senior officers accorded him a warm welcome on his very first visit after assuming office as finance minister.
During the meeting, the FBR chairman gave a detailed briefing to the minister on the overall performance and revenue targets and collection made during the first 10 months (July 2021- April 2022) of the current financial year.
The Minister for Finance expressed his satisfaction and generously appreciated team FBR on achieving the target. He hoped that FBR will continue to maximize revenue collection in the next two months to meet the upward revised target fixed for the current financial year, 2021-2022.
He also expressed his desire that Team FBR should explore all avenues of tax compliance and, thus, make all-out efforts to harness true revenue potential across Pakistan. Minister for Finance assured Chairman FBR of his total support in the ongoing tax collection drive in the country.
Chairman FBR also gave a detailed account of the flagship initiatives including Point of Sale (POS) and Track and Trace System (TTS). He assured the Finance Minister that all measures will be taken to further improve these initiatives and tap the real revenue potential in Retail as well as Large Scale Manufacturing Sectors.
The minister appreciated various digital innovative measures adopted by Pakistan Customs which include Clearance in the Sky. He also commended digitalization drive of FBR in order to automate business processes, ensure ease of doing business, and thereby facilitate taxpayers. Similar digital interventions should be made at seaports to ensure seamless and smooth clearance of cargo, the Minister emphasized.
The minister reiterated that all avenues must be explored and meaningful budget proposals presented before the government to maximize tax collection without creating any additional burden on the common man.
Copyright Business Recorder, 2022
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