ISLAMABAD: The Federal Board of Revenue (FBR) Monday briefed the International Monetary Fund (IMF) on the existing tax gap and revenue collection position for fiscal year (2023-24).
Sources told Business Recorder here on Monday that the FBR and IMF team, started meetings on revenue potential, tax gap and reforms/measures to broaden the tax base. The new tax proposals of the FBR including taxation of immovable properties for 2024-25 would be discussed here on Tuesday (today).
In this regard, an introductory meeting was held at the Ministry of Finance, here on Monday. In the evening, a detailed meeting was held between the IMF team and the FBR chairman, the FBR Member of Inland Revenue (Policy) and other senior tax officials of the Board.
According to sources, the FBR had worked out overall tax gap of Rs1,289 billion during 2022, which was 26 percent of potential collectable tax under the current taxation regime. Sales tax gap was Rs519 billion that was 24 per cent of potential collectable tax under sales tax regime. The income tax gap was Rs730 billion that was 31 per cent of the potential collectable tax under income tax regime.
In 2022, the customs duty gap was Rs40 billion that was 11 per cent of the potential collectable customs duty. The tax gap is broadly defined as the difference between what taxpayers should pay and what they actually pay.
Copyright Business Recorder, 2024
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