FBR Tax Target under review as Govt plans bold Rs500bn cut and floods levy
ISLAMABAD: The government is considering a powerful shift in the FBR Tax Target, weighing a cut of up to Rs500 billion and a new floods levy to support post-disaster reconstruction.
Officials said the annual Federal Board of Revenue (FBR) tax collection goal could drop from Rs14.13 trillion to as low as Rs13.7 trillion due to lower revenues and crop losses caused by devastating floods. Initial assessments indicate major agricultural setbacks, with rice, sugarcane and cotton production down by up to 15%, 5.7% and 10% respectively.
A proposed floods levy would target high-net-worth individuals and sectors to finance rehabilitation efforts, as inflation is also projected to rise to around 8% and GDP growth to slow to near 3%.
Despite delays in privatisation projects such as Pakistan International Airlines, First Women’s Bank, and power distribution companies, the government says reforms and strategic privatisations remain on track to improve efficiency and attract investment.
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