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Interim Finance Minister Dr. Shamshad Akhtar has requested the Federal Board of Revenue (FBR) to present its plan for achieving the annual revenue target of Rs. 9.4 trillion.
During a high-level meeting with government and FBR officials, Minister Akhtar urged the development of a feasible strategy.
Read more : Dr. Shamshad Akhtar Takes Charge as Caretaker Finance Minister
The FBR has identified five key areas to address a substantial Rs. 1 trillion revenue gap.
The tax authority found that withholding taxes, collected by agents, were not being included in the tax net. Enhanced withholding tax monitoring (1) could potentially increase tax revenues by up to Rs. 200 billion in the current fiscal year.
Tax evasion in the cigarette industry (2) has also been highlighted. While some tobacco companies have adopted the Track and Trace System, it is still a work in progress for others. The FBR believes that stricter measures could yield an additional Rs. 50 billion in tax revenue from the tobacco sector.
Preventing the smuggling of foreign currency and other goods through Afghanistan and Iran (3) is another focus area. Detection and legal action against sales tax fraud (4) have also been identified.
The proper valuation of imported goods (5) is suggested as another means of boosting revenue. A more accurate assessment of commodities imported from other countries could significantly increase tax collection.
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