Federal Government Sets Ambitious Tax Collection Target for Fiscal Year

The federal government in Islamabad is gearing up to enhance tax collection efforts by setting a target of Rs12.97 trillion for the upcoming fiscal year. This ambitious goal represents a 40% increase from the revised target of Rs9.25 trillion for the current fiscal year. To achieve this target, the Federal Board of Revenue (FBR) is planning to implement new taxation policies and enforcement measures.

For the next fiscal year, the government aims to generate approximately Rs1.8 trillion through these initiatives. The FBR will focus on factors such as GDP growth, inflation rates, and resolving pending tax cases to contribute Rs2 trillion towards the target. An additional Rs1.8 trillion is expected to be collected through the introduction of new taxation measures.

Changes in tax rates will impact different income brackets, with non-salaried individuals facing progressive tax rates ranging from 15% to 45% across five taxable slabs. Salaried individuals will experience tax rates varying from 5% to 35% based on their annual income.

Furthermore, various products and services will be subject to new taxes. Mobile phones will now be taxed at a standard rate, with exceptions for high-value phones. Additionally, taxes have been imposed on items like acetate tow, nicotine pouches, sugar supply, and cement.

In property transactions, different tax rates will apply to filers, late filers, and non-filers. Late-filers and non-filers will face higher tax rates compared to regular filers. Penalties and prosecutions are proposed for entities that fail to disclose complete information in their tax returns or do not register under specific schemes.

To ensure compliance with tax regulations, strict measures are being proposed, including penalties for non-compliance. The government's objective is to enhance tax collection through these revised taxation policies and enforcement measures.

The government's focus on increasing tax collection through new policies and enforcement measures is aimed at strengthening the country's revenue generation. By implementing these changes, the government seeks to improve tax compliance and contribute to the economic development of the nation.