The International Monetary Fund (IMF) has decided to reduce the tax collection target for the next fiscal year (FY21) by the Federal Revenue Board to Rs 4.900 billion. Originally the IMF set the FY21 target at Rs5.101bn. Sources said the federal government would fix the petroleum levy for the whole fiscal year at Rs30 per litre (maximum).
That would help the government in the next fiscal year to generate Rs489 billion. The Government had projected that the outgoing fiscal year (FY20) would generate Rs250 billion via the petroleum levy. Sources claimed overall sales tax (GST) on petroleum products would be maintained at 17pc during the next fiscal year.
In addition to the FBR taxes, the government expects to collect roughly Rs500 in “other taxes” as well as Rs1,150 billion in “non-taxes.” Adding the above, overall gross revenue from the government could rise to around Rs6,500 billion for the next fiscal year.
Given that Rs3,000 billion of total revenue would be transferred to provinces in the coming fiscal year, net federal revenue is expected to be around Rs3,500 billion.
Extracted from City42 News