IMF pressure: Federal government to further impose sales tax worth Rs 30 billion on petroleum
Federal Board of Revenue (FBR) Chairman Asim Ahmad Wednesday decided to convene a special Chief Commissioners’ conference and Chief Collector conference of tax offices located in Sindh to devise a strategy for the second quarter (2022-23) to overcome the revenue shortfall of Rs. 21 billion in October.
The FBR Chairman would reach Karachi on Thursday (tomorrow) to chair the Chief Commissioners conference at the Large Tax Office (LTO) Karachi.
The Chief Commissioners of all Regional Tax Offices, Medium Tax Offices (MTOs), and Corporate Tax Offices of Karachi will attend the meeting and give presentations. The Chief Commissioners of Regional Tax Offices of Quetta and Hyderabad will also give presentations to the FBR Chairman.
On Friday, the FBR Chairman will chair the Collectors of Customs conference in Karachi.
The FBR is working on a strategy to meet the revenue collection target set for the second quarter (October to December) 2022-23 in consultation with the Chief Commissioners of the LTOs/MTUs/RTOs.
There is a strong possibility to impose a sales tax on petroleum products from 15th November 2022 to generate additional revenue of Rs. 25 to 30 billion.
Sources said that the target for October 2022 was set at Rs. 534 billion. The tax projection for the second quarter (October to December) of 2022-23 has been estimated at Rs. 2,036.087 billion. In the first quarter of 2022-23, the FBR collected Rs. 1,635 billion.
The tax collection of the FBR stood at nearly Rs. 513 billion in October against the target of Rs. 534 billion, depicting a massive shortfall of Rs. 21 billion.
The tax collection from July to October 2022-23 amounted to Rs. 2,148 billion against the target of Rs. 2,143 billion, reflecting an increase of Rs. 5 billion.