Islamabad, Sep 21: It is anticipated that FBR will experience a deficit of Rs. 275 billion during the first quarter of the current financial year. This month, a proposal for a mini-budget of almost Rs. 1 trillion is anticipated, along with a shortfall of Rs. 175 billion.
The aim for this month is Rs. 1.1 billion in order to reach the tax target of Rs. 12.97 billion. ProPakistani was informed by sources that the forthcoming mini-budget would impose withholding tax and remove sales tax exemptions.
To make up the difference in revenue when the current month ends, a mini-budget could be created at any time. FBR will not be able to make up August’s loss, much less fulfill September’s goal. According to sources, the agency took in more than Rs. 450 billion in September.
The FBR anticipates collecting about Rs. 950 billion in taxes by the end of September. The overall revenue loss for August and September could amount to approximately 250 billion rupees.
Concerns over possible monthly revenue deficiencies have been brought up by internal assessments conducted by FBR. It’s possible that the tax goal won’t be met by the conclusion of the fiscal year due to monthly revenue shortages.
Proposals to raise withholding tax and remove sales tax exemptions are being considered for the mini-budget. There is a plan to do away with sales tax exemptions in order to establish a uniform sales tax rate.
There is no room for revenue shortages based on benchmarks agreed upon with the IMF, insiders said. The burden will be shifted to current taxpayers rather than being expanded to increase tax collection.
