PTI government sets a huge tax collection target of Rs 7 trillion

PTI government sets a huge tax collection target of Rs 7 trillion

ISLAMABAD - Pakistan has informed International Monetary Fund (IMF) to levy federal excise duty (FED) on imported and domestically manufactured vehicles.

The Washington-based lender has been told by the government that it will raise the sales tax on petroleum products besides hiking petroleum development levy rates.

With a blend of new taxes and rupee devaluation, the tax collection could increase to Rs4.5 trillion during the current financial year, Rs5.8 trillion by June 2020 and Rs7 trillion by June 2021, respectively.

Also, imported and domestically manufactured vehicles may be levied with federal excise duty and likewise withholding tax rates on non-filers and on imports of finished goods will be massively jacked up.