ISLAMABAD: The Federal Board of Revenue (FBR) has estimated to collect nearly Rs1,296 billion from customs duties in 2024-25 for which trade taxes, including regulatory duties would be further increased on luxury and non-essential items in budget (2024-25).
The FBR has projected to collect Rs1,091 billion under the head of customs duty during 2023-24 as compared to estimated Rs1,296 billion in 2024-25, reflecting an increase of Rs 205 billion.
The heavy reliance on “trade taxes” would continue in the coming budget (2024-25) for achieving the assigned revenue collection targets during next fiscal year, sources said.
SIFC helps FBR collect Rs6.71trn in Jul-Mar FY24
A review of the Pakistan Customs Tariff revealed that many imported items including consumer goods, home appliances, finished products and non-essential items are already subjected to multiple “trade taxes” like customs duty, regulatory duty, additional customs duty (ADC), special customs duty, sales tax, withholding tax and excise duty.
The policy of reliance on “Trade Taxes” would continue in the next fiscal year, as mobilization of revenue at the domestic stage through documentation and broadening the tax base would not be an easy task in 2024-25, they added.
Copyright Business Recorder, 2024
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