Government decides to impose new heavy taxation
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The caretaker government is planning to impose taxes on the agriculture, real estate, and construction sectors in order to meet the tax target of 92 trillion rupees set by the FBR.
Additionally, they are considering introducing a wealth tax on non-movable assets. Government sources have revealed that in the next two years, the tax-to-GDP ratio will be increased to 15 percent. They are also working on rationalizing the capital gains tax on immovable properties to encourage economic growth.
Furthermore, the government is undertaking a digitization project called "Digitalization" to bring the economy into the track and trace system. Selected sectors, including tobacco, sugar, fertilizer, cement, and others, will be monitored to prevent tax evasion. The implementation of Point of Sales, Single Window, and Digital Invoicing will be fully enforced from now on.
The FBR is working on giving a legislative shape to the FBR Act so that it can be subjected to wider consensus before being implemented through an ordinance. They are also simplifying the process of filing tax returns and making reforms in the dividend withholding tax system.
Moreover, if the pending cases in the courts are resolved, an additional 3 billion rupees can be generated. It is essential to expedite the appeal process and create an alternative dispute resolution system to resolve conflicts.
