ISLAMABAD: Finance Minister Ishaq Dar has rejected the proposal to impose flood levy on the import of non-essential items from 2023 and regularize non-duty paid vehicles in erstwhile tribal areas.

During Finance Minister’s visit to FBR on December 22, various revenue generating options were discussed for the second half of 2022-23 in case of revenue shortfall, sources told this correspondent adding that the final decision to this effect has not yet been taken. They added that the final decision whether to impose flood levy or not would be taken by the Finance Minister in a couple of days depending upon the revenue shortfall.

The government is working on imposing a flood levy at the rate of 1 or 2 percent through the promulgation of an ordinance to generate additional revenue of Rs 30-35 billion during the last six months of the current fiscal year.

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Dar was briefed by the tax authorities about the revenue collection position and data for December 2022 was reviewed.

Sources in the finance ministry on condition of anonymity said that as a consequence of import compression, achieving revenue target seems very challenging. The official added that the rate of the proposed flood levy was not yet firmed up. The concerned officials are working on different estimates to finalize the rate of the upcoming flood levy on imports adding that the government was firming up a proposal to curtail imports through fiscal measures.

Copyright Business Recorder, 2022