FBR targets Rs3.8 trillion tax collection in next FY

ISLAMABAD: The Federal Board of Revenue (FBR) announced its ambitious plan to collect Rs 3,8 trillion in taxes for the upcoming fiscal year (FY) 2024-2025 for revenue generation efforts on Wedneday.

The Chairman of FBR said that proactive measures will be taken to streamline the tax system and boost revenue streams for the government.

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Under the new plan, the FBR aims to impose additional taxes totaling Rs1,800 billion, with a focus on income tax, sales tax, and excise duty. The measures are designed to ensure a “fair and equitable” tax regime while maximising revenue collection.

Key reforms include abolishing tax exemptions worth Rs434 billion and imposing a 5 per cent Federal Excise Duty (FID) on immovable property. The zero rating on certain imported goods, such as milk products and LPG imports, will be eliminated to broaden the tax base.

The FBR also expects generating substantial revenue from growth and judgments in pending court cases, targeting an estimated Rs2,000 billion from this source. Digital initiatives are expected to contribute a further Rs200 billion to revenue generation efforts.

The chairman pointed to court proceedings and judgements in achieving revenue targets, hinting at the possibility of implementing further tax measures if necessary.

Meanwhile, a retailers scheme is projected to add Rs50 billion to revenue generation in the upcoming fiscal year.

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Previously, the FBR blocked 150,000 SIM cards belonging to non-compliant taxpayers to enforce tax compliance. The national revenue board provided data for 5,000 non-filers daily to the Pakistan Telecommunication Authority (PTA). A new committee was formed to implement recommendations from the Specialised International Financial Crimes (SIFC) committee.

Non-filers have the option to restore their SIM cards by submitting their income tax returns. Around 18,902 SIM cards have been reactivated after non-filing citizens paid their taxes and were included in the active taxpayers’ list. Despite earlier rumours, FBR clarified that there is no system in place to block SIM cards of tax filers.

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The FBR has issued an income tax general order to block SIM cards of over 506,671 identified non-compliant taxpayers across the country. These individuals are eligible to file income tax returns but have not fulfilled their tax obligations.