FBR ‘sets’ Rs12,970bln tax collection target for FY2024-25

The PML-N-led coalition government is set to present the budget for the fiscal year 2024-25 tomorrow (Wednesday). According to sources familiar with the matter, the budget is expected to introduce direct taxes amounting to Rs3452 billion and custom duty worth Rs267 billion.

The budget proposal includes the imposition of new taxes on various fronts, including income tax, capital value, sales, services, Federal Excise Duty (FED), and others.

Additionally, it has been revealed that inflation is likely to increase in the upcoming federal budget, as the International Monetary Fund (IMF) has urged Pakistan to further reduce sales tax exemptions. As a result, prices of essential commodities such as milk, tea, sugar, rice, flour, and packed milk are expected to rise in the budget for the fiscal year 2024-25.

The IMF has reportedly demanded the imposition of a 5-10% sales tax on the zero-rated sales tax sector, while pressure is being exerted to eliminate tax exemptions in the Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) by June 30.