ISLAMABAD: The International Monetary Fund (IMF) has increased the tax collection targets for Pakistan for the current financial year 2019-20 by Rs109.45 billion to Rs4,017 billion. Due to coronavirus outbreak, the target was reduced to Rs3,908 billion but now it has been revised upward to Rs4017.46 billion.
The Federal Board of Revenue (FBR) has forwarded a summary for the increased tax collection targets, a copy of copy of the summary available with The Express Tribune, which directed its field formations to revise their respective tax collection targets.
Sources said that the target for income tax and federal excise duty (FED) had been reduced to Rs99.714 billion and Rs50.53 billion, respectively, while the targets of sales tax and customs duty was increased to Rs172.22 billion and Rs87.48 billion, respectively.
The tax collection targets for the current month (May) and next month (June) had also been increased by Rs25 billion and Rs42.46 billion, respectively. Similarly, the targets for income tax and the federal excise duty for May had also been increased.
According to the summary, the FBR had set a revenue target of Rs957 billion for the last quarter [April-June 2020] with an increase of Rs109.458 billion over the previous target of Rs847.54 billion. The new target boosts the entire financial year’s collection target to Rs4017.45 billion.
The share of direct tax [income tax] had been cut by Rs.99.714 billion to Rs1,523 billion from the previous target of Rs1,623 billion, while the target of sales tax collection is increased by Rs172 billion to Rs1,599.22 billion.
The target for receipts in terms of federal excise duty had also been cut from Rs312 billion to Rs261 billion, down by Rs50.52 billion. However, the target for customs duties had been increased from Rs546 billion to Rs633.48 billion with an increase of Rs87.47 billion.
The document further states that the FBR has also revised its tax collection target for this month (May) by Rs25 billion to Rs275 billion from the previous target of Rs250 billion. For the month of June, according to the document, the target had been raised from Rs397.542 billion to Rs440 billion.
The FBR has directed the field formations to ensure that the tax collection targets were achieved, the sources said, adding that the revisions in the targets were made in the light of the recent video link talks with the IMF.