Additional revenue collection: Benefits must be passed on to public: PM

ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) that the benefits of additional revenue collection must be passed on to the general public specifically salaried class and compliant taxpayers during 2024-25.

Sources told Business Recorder that the prime minister has issued these directions for implementation of the FBR’s transformation plan.

The FBR has estimated to collect Rs75 billion to Rs100 billion additional revenue from heavy taxation on salaried class in budget (2024-25).

Tax collection at import stage: share in total collection reduces

The government will promulgate an Ordinance or present a Bill in the Parliament containing enforcement measures against non-filers and nil-filers; etc, to meet tax collection target of Rs12,915 billion for 2024-25. The draft law is under the process of vetting at the Law Division.

Recently, the prime minister had approved FBR’s transformation plan containing enforcement measures regarding abolishing non-filer category besides restructuring non-registered business entities.

Under the directive, the FBR is striving for collection of Rs2 trillion over and above the assigned revenue collection target on quarterly basis. Benefits of additional revenue collection must be passed on to public, salaried class and compliant taxpayers, the prime minister added.

When contacted, sources informed that the FBR’s maximum revenue collection may reach Rs12 trillion against the assigned target of Rs12.9 trillion by the end of the current fiscal year.

Despite taxation measures of Rs1,800 billion in the budget (2024-25), the FBR has suffered a massive shortfall of over and above Rs90 billion during the first quarter (July-September) 2024-25.

Sources said that government will promulgate an Ordinance containing enforcement measures against non-filers and nil-filers; etc, to meet tax collection target of Rs12,915 billion for 2024-25.

Recently, the prime minister had approved the FBR’s transformation plan containing enforcement measures regarding abolishing non-filer category besides restructuring non-registered business entities.

Copyright Business Recorder, 2024