ISLAMABAD: Federal Board of Revenue (FBR) has proposed the government to set up new taxes to meet the tax deficit. According to news reports, after dealing with external deficit in the government, the government is now considering internal revenue tax improvements.
Revenues Hurting Due To Tax Relief
Given To Various Parties
Prime Minister Imran Khan was briefed by the FBR authorities, in which he revealed that in the first five months of the current fiscal year the income in tax declined by Rs. 102 billion. The FBR also proposed the proposal to impose new taxes to the prime minister to increase tax revenue so that the shortfall could be eliminated.
During the briefing to Prime Minister, the FBR pointed to an erosion of the tax base due to the large tax cuts announced in the last budget of PML-N government in April, as well as the Supreme Court’s order to suspend collection of tax on mobile phone cards. Also, the government’s decision to slash sales tax on petroleum products has cost the exchequer almost Rs: 35billion thus far.
Talking to media news channel, FBR sources said that only during the first five months of the current fiscal year, the revenue earnings from telecom sector came to see a decline of Rs 16 billion. Keep in mind that in June this year, the Supreme Court of Pakistan banned tax on pre-paid mobile cards.
The FBR has suggested Prime Minister Imran Khan to refer the Supreme Court to revise the order for tax on mobile cards. The annual revenue collection alone from these taxes on prepaid cards is around Rs: 80 billion.