Constant: No increase in sales tax, says FBR member

Rate to remain at 17% in upcoming budget.

ISLAMABAD:

Federal Board of Revenue (FBR) has stated that the government has decided against increasing sales tax in the upcoming budget. 

FBR member Shahid Hussain Asad said that the rate of sales tax will remain 17% in the budget. Asad added that this will be an opportunity for the FBR to reinforce its collection mechanisms, instead of increasing sales tax.

Responding to a question regarding shortfall in revenue collections in the current fiscal year, he said the FBR has taken special initiatives to meet the Rs2.345 trillion target. FBR, in the last two months of the current financial year, has to collect slightly over Rs600 billion.

Hussain expressed confidence that FBR will cover this shortfall and rejected reports of an emergency situation emerging in the body to achieve this target.

He said the FBR cannot end Rs 500 billion tax exemptions due to several international agreements such as preferential trade agreements (PTAs) with different countries. Commenting on the shortfall in revenue collections for the current fiscal year, Asad said the FBR has taken special initiatives to meet the target of Rs 2.345 trillion. 

Published in The Express Tribune, May 22^nd, 2014.

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