ISLAMABAD: Federal Board of Revenue agreed a plan with IMF by impose additional taxes of Rs. 216 billion in case the shortage of revenues.
According to the plan agreed with the IMF, additional taxes of 18 billion will be collected every month while the reduction in tax revenues will be completed with emergency measures. Under the plan, there are proposals to increase taxes on various items under Good and Service Taxes (GST) on tier one will be increased from 15% to 18%, under tier one, GST will be increased for leather and textile. By increasing GST, one billion will be earned every month and 12 billion annually.
According to the Statement, sugar will also be raised. There are proposals for a federal excise duty of Rs 5 per kg, one percent advance income tax on import of machinery and 0.5 per cent tax on import of raw materials for industries.
According to the officials, one percent advance income tax on imported raw materials is also part of the alternative plan, while the proposal to meet the revenue target by increasing the withholding tax on supplies by one percent and increasing the withholding tax on services by one percent are also among the alternatives. According to sources, FBR’s alternative plan for revenue will be implemented in case of reduction in tax collections, while IMF has expressed satisfaction over FBR’s performance
