The revenue impact of new taxing measures has been enhanced by the Federal Board of Revenue (FBR) from Rs. 300-350 billion to Rs. 400-450 billion, signifying an increase of Rs. 100 billion for the next fiscal budget (2022-23).
The initial taxing measures were calculated at Rs. 300-350 billion based on budgetary proposals for the coming fiscal year, in order to meet the Rs. 7,255 billion revenue collection targets set for 2022-23.
For the coming fiscal year, the revenue objective will stay unchanged. However, certain substantial direct tax measures to raise revenue-generating sectors’ taxation have resulted in improved estimates of new taxing measures. This means that the Finance Bill would now include extra taxes measures worth Rs. 100 billion.
The FBR’s tax collection target for the next fiscal year is Rs. 7,255 billion, up 18.9% from the Rs. 6100 billion upward revised targets for the previous fiscal year, taking inflation and GDP growth predictions into consideration.
When the macroeconomic fundamentals were significantly different, the International Monetary Fund (IMF) anticipated 7.9% inflation and 5.4 percent GDP growth for the next fiscal year by mid- to end-January 2022.
During the first ten months of the current fiscal year (July-April 2021-22), the FBR collected Rs. 4,858 billion in net revenue, exceeding the target by Rs. 239 billion and growing by 28.6 percent over the previous year’s equivalent period of Rs. 3,778 billion.
The FBR needs to collect Rs 484.5 billion per month to meet the budgeted target of Rs 5829 billion and Rs 621 billion per month to meet the higher revised target of Rs 6100 billion in the remaining two months of the current fiscal year.