Pakistan sets higher goal for next fiscal year for tax revenue at $34.6 billion, Government considers raising tax on edible oil imports

Pakistan’s Federal Board of revenue (FBR) has discussed with Prime Minister Sharif a detailed plan to increase tax revenue by Rs 4,000-4,500 crore to achieve Rs 7.2 trillion in the new fiscal year. Business recorder an analytical news outlet reported that Pakistan has set a target of 34.6$ dollars for tax accumulation for this fiscal year, Pakistan is scheduled to unveil its 2022-23 budget on June 10.

According to reports, the scheme provides for a slight increase in the tax rate for individuals earning between Rs 100,000 and Rs 200,000 per month, and a higher rate for those earning more than Rs 200,000. In addition, Pakistan plans to levy additional income tax on annual income from the steel, pharmaceutical and other profitable industries. At the same time, the minimum tax rate on imported edible oil may be raised from 2% to 6%. In addition, the 2022 Finance Bill is expected to introduce a new tax concept, the “windfall tax” in the Income Tax Regulations 2001, with a special levy on potential sectors that make extraordinary profits but do not pay taxes due.