ISLAMABAD: The Federal Board of Revenue (FBR) has committed to Finance Minister Ishaq Dar to achieve the quarterly target (July-September) 2022-23, despite the slowing down of the economy, floods, import contraction, and zero sales tax on the POL products.
Dar visited the FBR and presided over a meeting on the revenue performance of the FBR. The FBR chairman and Members of the Board (FBR) attended the meeting.
Asim Ahmad, the chairman FBR extended a warm welcome to the minister on behalf of the FBR team. The chairman gave the presentation and explained various revenue initiatives taken by the FBR and issues currently being faced in revenue administration.
The minister was briefed that the FBR has successfully achieved its monthly targets for the months of July and August 2022 and will also achieve the quarterly target up to September 2022. This performance is despite the slowing down of the economy in the month of September due to floods, import contraction, and shrinking of demand due to inflation in the country as well as no sales tax on POL products.
The finance minister appreciated the FBR team for their efforts in meeting the targets. He assured the team that he will extend full support in the performance of their duties and will engage with them frequently. He advised the FBR team to position themselves to the quick changes in the economic outlook. He further advised the FBR to increase its efforts to achieve the true tax potential.
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He especially appreciated the work done by the FBR in terms of increasing the share of direct taxes (income tax and capital value tax) in the total share of taxes as compared to last year through important tax measures taken this year for taxing the rich. The finance minister also highlighted the importance of taxpayers’ engagement in devising tax policies and revenue collection efforts.
The finance minister further advised the FBR to increase its efforts because there is more potential to collect tax to bring the tax-to-GDP ratio to 15 per cent.
Overall, the finance minister appreciated the good work done by the FBR in terms of increasing the share of direct taxes (income tax and capital value tax) in the total share of taxes as compared to last year through the important tax measures taken this year for taxing the rich.
The finance minister also highlighted the importance of taxpayers’ engagement in devising tax policies and revenue collection efforts. The meeting was attended by the top leadership of the FBR.
Copyright Business Recorder, 2022