ISLAMABAD: Federal Board of Revenue (FBR) Chairman Dr Muhammad Ashfaq said Thursday that the International Monetary Fund (IMF) is satisfied with the revenue collection performance of the tax machinery during first quarter (July-Sept) of 2021-22.

Talking to media at the conclusion of the Senate Standing Committee on Finance here at the Parliament House on Thursday, the chairman FBR said that the ongoing talks with the IMF did not conclude so far but the Fund staff was satisfied with the revenue collection of the Board.

The FBR chairman said that the FBR's officials briefed the IMF on both the direct and indirect taxes during the virtual meetings.

He said that the FBR surpassed the assigned target by Rs186 billion in the first quarter as the revenue collection stood at Rs1,395 billion in the first three months of the current fiscal year.

The FBR chairman was confident that the FBR's annual tax target would be achieved.

FBR sets Rs1,200bn revenue collection target for Q1

When contacted, sources told Business Recorder here on Thursday that a proposal is under discussion to raise the FBR's annual tax collection target from Rs5.8 trillion to Rs6.3 trillion for 2021-22.

However, the FBR wants to continue its efforts for the achievement of the assigned target of Rs5.8 trillion for 2021-22. The FBR may raise additional customs duties (ADCs) and regulatory duties at the import stage.

According to sources, mostly those measures are under discussion, which were required to be taken during last June but not made part of the Finance Act 2021 like raise in the rate of personal income tax by adjusting the higher income brackets and withdrawal of sales tax exemptions.

Copyright Business Recorder, 2021