Despite the tax regulator’s special initiatives, Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to collect Rs. 7.6 trillion in taxes by June 2023.
This was decided upon, according to a national newspaper, almost two weeks ago at a meeting of the premier’s “Strategic Roadmap” with ministers and secretaries, the heads of the Finance, Privatization, Industries, and Production, and Power Divisions, among others.
The target for revenue collection was set at Rs. 7.47 trillion at the meeting, which is 22% higher than the target from the previous year. The regulatory body’s unique efforts to widen the tax base have kept the overall revenue goals on track. Import contraction, higher inflation, exchange rate, and interest rate policies, on the other hand, may have an impact on the roadmap targets for meeting the PM’s target of Rs. 7.6 trillion.
For efficient tax collection and regular reporting to the PM, it was decided during the open discussion to include all revenue mobilization, expenditure, and privatization reforms.
Following extensive discussion, it was decided that FBR would meet the aforementioned revenue target, upgrade its track and trace system in the sugar sector with all additional tax revenue of Rs. 20 billion (as opposed to Rs. 7 billion), and share a roadmap for implementing the track system by December 31 in sectors such as cement, fertilizer, tobacco, beverages, and POL products.
The Finance Minister and Chairman of the FBR agreed to review tobacco sector issues and prepare a detailed presentation by December 30, 2022. On a more pressing note, Chairman FBR will present the strategy and implementation plan for integrating the remaining tier-1 retailers over the next seven months by December 25.
The original FY23 revenue collection target was Rs. 7,470 billion, but due to the floods and the aforementioned changes, the targets for the current fiscal year are being changed, and the FBR revenue may be impacted as a result.
