FBR to Broaden Tax Base by Introducing New Exercise
News: The Federal Board of Revenue (FBR) is looking forward to broaden the tax base of the country by introducing a new exercise, reported an authentic news source.
According to the latest news, the Federal Board of Revenue (FBR) has decided to broaden the tax base by taking the required measures. A meeting was held between the special assistant to the Prime Minister (SAPM) on Revenue Tariq Pasha and the officials of FBR. He visited the regional tax office in Rawalpindi and Islamabad to advise the authority on starting the documentation drive. SAPM defined some tax-collecting targets and assigned them to both RTA Islamabad and Rawalpindi for the efforts to broaden the tax base.
FBR has not announced to impose any taxes at this time; however, it will add about 2 Million retailers to the tax net who are not paying the government-implemented tax. The idea of broadening the tax base came under consideration during the meeting of the National Security Council (NSC) for the preparation of an economic roadmap for 10 years. According to reports shared by NSC, FBR faced a shortfall of almost PKR 225 Million in December 2022. The tax collection target was PKR 965 Billion whereas the collected tax amount in 2022 is PKR 740 Billion.
The federal government wishes to add a 1% to 3% flood levy, SAPM Tariq Pasha was informed of the total tax collection but no reliable response was given at the time. According to the news source, the Chief Commissioners of Islamabad and Rawalpindi have been briefed about the current progress and future actions related to the broadening of the tax base. Furthermore, it was mentioned that the Director General of Digital Invoicing/ Analysis and Directorate General to broaden the tax base has been operational to work on the expansion of the tax base in 2023.
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