ISLAMABAD: Federal Board of Revenue (FBR) has said the government has decided not to put extra burden on masses through increasing sales tax in upcoming budget.
In an Interview with Radio Pakistan on Wednesday, Member FBR Shahid Hussain Asad said that rate of sales tax will remain 17 percent in the budget.
He said instead of increase in sales tax, FBR will reinforce its collections mechanisms.
Responding to a question regarding shortfall in revenue collections for current fiscal year, he said FBR has taken special initiatives to meet 2345 billion rupees’ target.
It is worthy to note that FBR, in last two months of current financial year has to collect slightly over 600 billion rupees.
Shahid Hussain rejected reports of imposing any emergency in FBR to achieve this target.
He expressed confidence that FBR will cover the shortfall.
To another question, he said FBR could not end 500 billion rupees tax exemptions due to several international agreements such as preferential trade agreements (PTAs) with different countries.
He said, under IMF package, FBR would not end these exemptions with single stroke of pen in near future, either before or after the upcoming budget.
He, however, said some of tax exemptions would be weaned off gradually in next three years.