Rs.103Bn New Taxes In Budget
Rs.103Bn New Taxes In Budget
Government has decided to introduce new taxation measures of Rs103 billion in the budget for 2011-12, mostly in the form of indirect taxes which will add to the burden on the common man.
General Sales Tax rate to be brought down from 17% to 16%
* Rs 364 billion to be generated through broadening tax base
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This decision is aimed at keeping the budget deficit below four per cent — a condition that will pave way for release by the International Monetary Fund of a tranche of $1.3 billion..
He said an amount of Rs261 billion would be netted as a result of several factors, especially the rising inflation next year. The IMF has projected that Pakistan’s inflation next year could exceed 15 per cent which will contribute to an increase in the share of general sales tax in total collection.
According to the official, the base figure, a benchmark for revenue measures, has been set at Rs1,588 billion, considerably less than the collection target for 2010-11. But the IMF has estimated the figure at around Rs1,580 billion.
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An FBR official said the failure to achieve the revenue target of Rs1,588 billion by the end of June as agreed with the IMF might lead to revision of all macroeconomic indicators.
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