Government Boosts Revenue with Surplus Income Tax Collections

Income tax revenue has surpassed expectations by around Rs335 billion, offsetting the lower-than-expected collections from sales tax and customs duties. This achievement has helped to balance out the shortfall in other areas, providing a boost to the overall revenue collection.

Moreover, the government has decided to extend the reduced rates of sales tax on services for individuals who opt for credit or debit card payments. This move is aimed at encouraging the use of electronic payment methods and fostering the adoption of digital transactions.

The recent fiscal year saw a significant increase in income tax revenue, which outperformed the set target by a substantial margin. This surplus in income tax collections has played a crucial role in offsetting the deficits in sales tax and customs duty revenues, ensuring a more balanced financial outcome for the government.

The government's decision to extend the lower sales tax rates on services for electronic transactions reflects its commitment to promoting digital payment methods and enhancing financial inclusivity. This measure not only incentivizes individuals to use credit or debit cards but also contributes to the broader goal of creating a more cashless economy.