State Minister for Finance Ayesha Ghous Pasha and Asim Ahmed, chairman of the Federal Board of Revenue (FBR), informed the National Assembly’s Standing Committee on Finance and Revenue that nine million people had fallen below the poverty line due to the recent severe floods. In addition, the economic growth rate may miss the objective by more than 2 percent.
Asim Ahmed, chairman of the Federal Board of Revenue (FBR), informed the National Assembly’s Standing Committee on Finance and Revenue on Tuesday’s economic condition.
Asim Ahmed stated that despite the Fund’s pleasure with tax receipts last month, political and economic turmoil in the nation may put pressure on tax revenues in the coming months. He also informed that from July to October of 2022, FBR collected Rs2.149 trillion. The sales tax and customs duty targets could not be fulfilled; however, the income tax objective was met. Tax collection may be influenced by a drop in imports, cuts in PSDP (public spending) and rising inflation.
The economic team also ruled out the possibility of imposing additional taxes, stating that the country has informed the International Monetary Fund (IMF) about the likelihood of a shortfall in tax collection due to the flood-ravaged economy and that the IMF is likely to grant Pakistan loan concessions.
The FBR chairman said that the proportion of direct taxes to overall tax receipts is 62%. The FBR collected Rs52 billion in taxes from income tax returns during the previous fiscal year. Asim said that the current tax-to-GDP ratio of 9 percent has fallen due to GDP rebasing.
