AIRLINK 202.36 Increased By ▲ 1.12 (0.56%)
BOP 10.16 Increased By ▲ 0.19 (1.91%)
CNERGY 7.18 Increased By ▲ 0.29 (4.21%)
FCCL 37.11 Increased By ▲ 1.75 (4.95%)
FFL 17.20 Increased By ▲ 0.05 (0.29%)
FLYNG 25.66 Increased By ▲ 1.45 (5.99%)
HUBC 135.40 Decreased By ▼ -2.79 (-2.02%)
HUMNL 14.11 Increased By ▲ 0.04 (0.28%)
KEL 4.85 Decreased By ▼ -0.01 (-0.21%)
KOSM 6.69 Increased By ▲ 0.03 (0.45%)
MLCF 46.30 Decreased By ▼ -0.01 (-0.02%)
OGDC 222.70 Increased By ▲ 0.16 (0.07%)
PACE 7.04 Decreased By ▼ -0.02 (-0.28%)
PAEL 42.50 Decreased By ▼ -0.64 (-1.48%)
PIAHCLA 17.05 Increased By ▲ 0.02 (0.12%)
PIBTL 8.60 Increased By ▲ 0.06 (0.7%)
POWER 9.67 Increased By ▲ 0.57 (6.26%)
PPL 188.25 Decreased By ▼ -0.51 (-0.27%)
PRL 42.49 Decreased By ▼ -0.78 (-1.8%)
PTC 25.30 Decreased By ▼ -0.05 (-0.2%)
SEARL 108.70 Decreased By ▼ -1.72 (-1.56%)
SILK 1.02 Decreased By ▼ -0.01 (-0.97%)
SSGC 42.50 Decreased By ▼ -0.14 (-0.33%)
SYM 18.44 Decreased By ▼ -0.13 (-0.7%)
TELE 9.09 Decreased By ▼ -0.03 (-0.33%)
TPLP 13.51 Decreased By ▼ -0.17 (-1.24%)
TRG 67.89 Decreased By ▼ -0.27 (-0.4%)
WAVESAPP 10.35 Increased By ▲ 0.08 (0.78%)
WTL 1.85 Decreased By ▼ -0.02 (-1.07%)
YOUW 4.04 Increased By ▲ 0.03 (0.75%)
BR100 12,257 Increased By 37 (0.3%)
BR30 37,254 Decreased By -63.3 (-0.17%)
KSE100 116,070 Increased By 224.7 (0.19%)
KSE30 36,568 Increased By 91.5 (0.25%)

ISLAMABAD: The government is finalising additional taxation measures of over Rs 436 billion through amendments in the Finance Bill 2022 to achieve the enhanced revenue collection target of Rs7.440 trillion for next fiscal year.

Sources told Business Recorder that the government has increased the revenue collection target of the Federal Board of Revenue (FBR) from Rs7.004 trillion to Rs7.440 trillion for 2022-23, reflecting an increase of Rs 436 billion. The FBR will achieve the upward revised target of Rs6.1 trillion by the end of current fiscal year. Keeping in view the additional taxation measures to be announced through amendments in the Finance Bill 2022, the tax collection target of the FBR would be increased from Rs7.004 trillion to Rs7.440 trillion for 2022-23.

Different proposals are under consideration to impose additional taxes on high-income earning sectors including tobacco, beverages, steel, and other sectors through amendments to the proposed bill from July 1, 2022.

The additional amount has to be generated from other profit-earning sectors where taxes are not challenged in courts and ensure definitive collection of taxes in 2022-23.

Through amendments in the Finance Bill 2022, the government may increase the incidence of taxes on the salaried class, steel, edible oil, beverages, and tobacco sectors.

FBR chairman explains importance of increase in tax rates for salaried people

The proposal is to generate additional revenue from the tobacco sector. In Finance Bill, 2022, the FBR has proposed to raise the Federal Excise Duty on cigarettes to generate Rs10 billion. Last week, FBR Chairman Asim Ahmad informed that the net revenue impact of the taxation measures taken in the federal budget (2022-23) is expected to be increased from Rs355 billion to Rs480 billion following a rise in the income tax rates for salaried class and other taxation measures.

Through amendments in the Finance Bill 2022, the government may impose one percent Income Support Levy on people and companies earning Rs150 million a year, 2% on those having income of Rs200 million, 3% additional rate has been proposed for the Rs250 million annual income earners and 4% for Rs300 million annual income.

In the budget, the government had proposed a 2% rate for only those earning over Rs300 million a year Rs38 billion additional revenues.

The government has taken taxation measures of Rs440 billion and enforcement measures of Rs200 billion in the budget (2022-23) to meet the annual target of Rs7.004 trillion.

Total taxation measures have been proposed at Rs440 billion for 2022-23. Around 75 percent of the taxation proposals are related to direct taxes. The total relief measures stood at Rs85 billion. The net impact of the measures stood at Rs355 billion.

Sales tax/federal excise measures amounted to Rs90 billion, whereas, sales tax relief totalled Rs30 billion. The net impact of the sales tax/federal excise measures stood at Rs60 billion.

The income tax measures have been projected at Rs316 billion, whereas, relief has been provided of Rs49 billion. The net impact of the income tax measures totalled Rs267 billion.

The revenue from the administrative and enforcement measures has been estimated at Rs200 billion for 2022-23 as compared to Rs175 billion in 2021-22.

It is apprehended that the income tax proposed tax on deemed income of a non-productive immovable property to generate Rs30 billion and two percent Poverty Alleviation Tax on high earnings of all persons to raise revenue of Rs38 billion would be challenged in courts.

If this amount of Rs68 billion from these two income tax measures is challenged in courts, the revenue from these areas may not come. The FBR wanted to generate additional taxes which are definitely coming from the next fiscal year, officials added.

Copyright Business Recorder, 2022

Comments

Comments are closed.