ISLAMABAD: The direct taxes target has been projected at Rs 2,560 billion for the next fiscal year against Rs 2,182 billion estimated in 2021-22 to meet the Federal Board of Revenue (FBR)’s revenue collection target of Rs 7,255 billion for the next fiscal year.

According to the macroeconomic framework for 2022-23, the estimates for indirect taxes (net) had been projected at Rs 4,695 billion. The indirect taxes estimates cover sales tax, customs duty and Federal Excise Duty (FED) whereas direct taxes projections included income tax and withholding taxes.

The indirect taxes target has been estimated at Rs 4,695 billion for 2022-23 against Rs 3,647 billion estimated for 2021-22, reflecting an increase of Rs 1,048 billion. During July-May (2021-22), the indirect taxes collection stood at Rs 3,440 billion.

In 2020-21, the total indirect taxes collection amounted to Rs 3,008.2 billion.

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The direct taxes have been projected at Rs 2,560 billion for the next fiscal year against Rs 2,182 billion in 2021-22, showing an increase of Rs 378 billion.

The FBR collected around Rs 1.9 trillion under the head of direct taxes during the first 11 months of the current fiscal.

Direct taxes collection totaled Rs 1,726.0 billion during 2020-21. Out of this, 72 percent of the direct taxes collection comes through withholding taxes.

Copyright Business Recorder, 2022