The Federal Board of Revenue (FBR) Wednesday night briefed Hafeez Shaikh, Adviser to the Prime Minister on Finance and Revenue, on taxation proposals and relief measures for the next federal budget (2020-2021).
Sources told Business Reorder here on Wednesday that the meeting was not scheduled and was urgently called by the finance minister Wednesday night.
The FBR Chairperson, Nausheen Javaid Amjad, along with her team of members went to the Ministry of Finance, and presented initial sketch of budget proposals to Hafeez Shaikh.
The FBR presented proposals on tariff rationalization, changes in sales tax regime, income tax/withholding taxes rates, relief measures to various sectors due to slowdown of economy and lockdown following post-COVID-19 scenario, documentation of economy, and withdrawal of exemptions.
The meeting that continued for around three hours discussed the FBR's current pace of revenue collection, next year's target and budget proposals.
The FBR is working on several proposals to generate additional revenue to the tune of Rs500-600 billion in the next fiscal year through taxation measures, documentation and effective monitoring, enforcement and administrative measures.
According to the sources, the government is expected to set the FBR's revenue collection target within the range of Rs5,000 billion to Rs5,103 billion for the next budget against the revised target of Rs3,908 billion for 2019-2020, reflecting a growth of around 31 percent.
Tax authorities are confident to meet the revised target of Rs3,908 billion by the end of the current fiscal year, the sources said.
If revenue collection is estimated at around Rs4,500 billion for 2020-2021, keeping in view factors of growth in revenue collection, inflation, GDP growth and revenue base, the collection of remaining amount between Rs500 billion to Rs600 billion will be the biggest challenge for the FBR in the next fiscal year.
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