Govt to raise indirect taxes ratio in next federal budget

Rs4,695 billion to be collected in indirect taxes while Rs2,560 billion to be grossed in direct taxes: PM orders tax abolition for export industry’s raw material

By: News Desk
Published: 03:50 PM, 8 Jun, 2022
Govt to raise indirect taxes ratio in next federal budget
Caption: Representational image.
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The government is mulling to increase the ratio of indirect taxes in the forthcoming financial plan, reported 24NewsHD TV channel on Wednesday.

According to sources, the financial managers have suggested to raise the target of indirect taxes to the tune of Rs4,695 billion in the forthcoming budget 2022-23. Whereas, the target of indirect taxes ratio was set at Rs3,070 billion in the outgoing fiscal year. But later, the target was re-fixed at Rs4,272 billion. 

The financial planners have suggested to fix the target of direct taxes at Rs2,560 billion in the next 2022-23 budget whereas the national gross income is expected to be in the region of around Rs9,000 billion in the next fiscal. 

Sources informed that the Federal Board of Revenue tax collection target has been suggested at Rs7,255 billion whereas, under the head of non-tax collection the government is expected to gross Rs1,626 billion. 

PM’s big concession to export industry

Prime Minister Shehbaz Sharif Wednesday directed the authorities concerned to abolish all taxes on the raw materials of the export industry, as part of his government’s vision to develop an export-oriented economy.

The prime minister, in a meeting with a delegation of the American Business Council, also directed the formation of task forces to attract investment in multiple sectors.

The task forces would be formed in the fields of tourism, pharmaceuticals, information technology, e-commerce, large-scale manufacturing, and agriculture.

He told the delegation that the government was making efforts to ensure the production of export quality agricultural products.

He said it was for the first time that the government was calling for the consistency of the policies as the subjects of the national economy and public welfare were above politics.

The delegation comprised representatives from pharmaceuticals, food processing, IT, e-commerce, retail, textile, sports, and logistics sectors.

The participants said the government’s policies had helped revive the investors’ trust and the pre-budget consultation with the stakeholders was a welcoming step.

The prime minister directed the secretary of commerce as well as the secretary of the Board of Investment to ensure immediate resolution of the issues faced by the investors and sought a compliance report within a week.

Federal ministers Syed Naveed Qamar, Makhdoom Murtaza Mahmood, Marriyum Aurangzeb and senior officers attended the meeting.

Sports’ goods prices increased 

Just like unbelievably high US dollar rates have led to an extra-ordinary increase in the prices of items of daily use, the prices of sports’ goods have also increased manifold. 

There has been 50 to 80 per cent increase in the prices of bat, ball, racket, shuttlecock and other sports’ items, which has left both shopkeepers as well as importers completely baffled.  

Similarly, the customers, particularly kids, are not feeling comfortable either as these goods are not beyond their reach. 

Reporters Waqas Azeem and Mehmood Riaz