ISLAMABAD: The Federal Board of Revenue’s (FBR) tax collection target for the next fiscal year has been set at Rs4.963 trillion, according to official documents.
According to sources, the target was revised downwards after the government convinced the International Monetary Fund (IMF) to slash FBR’s tax collection target from Rs5.103 trillion to Rs4.963 trillion.
In the outgoing fiscal year the FBR collected Rs3.908 trillion in taxes compared to its actual target of Rs5.503, as the country’s economy battles the Covid-19 pandemic.
As per the available budget documents, the government has estimated direct taxes to be Rs2.043 trillion for the upcoming fiscal year compared to Rs1.623 revised budget estimates of the outgoing fiscal year. The actual budget estimate for direct taxes for FY2019-20 was Rs2.027 trillion.
Under direct taxes, income tax collection is estimated to be Rs2.036 trillion while workers welfare fund and capital value tax are estimated to be Rs3.207 billion and Rs3.04 billion respectively for the upcoming fiscal year.
Under indirect taxes, total collection is estimated to be Rs2.920 trillion, which includes Rs1.919 for sales tax.
The federal budget 2020-21, estimates the Federal Excise Duty (FED) collection at Rs361 billion.
During the upcoming fiscal year the FBR is also estimated to collect Rs640 billion in customs duties compared to the revised estimates of Rs546 billion for the current fiscal year.