Govt decreases tax target by Rs26b for the current FY

On Wednesday, The federal government revised the tax collection target for the current financial year 2020-21 by reducing it from Rs4,717 billion to Rs4,691 billion.

A copy of the budget briefings received by The Express Tribune shows that the federal government had earlier set a target of Rs4,963 billion in the federal budget which has been revised to Rs4,691 billion, reducing the target for direct tax income tax by Rs252.63 billion.

Sources confirmed that the FBR had set a tax collection target of Rs4,963 billion in the budget for the current financial year 2020-21, which was revised to Rs4,717 billion with a reduction of Rs246 billion, which has now been further reduced.

Therefore, Federal Board of Revenue (FBR) officials say efforts are underway to increase tax collection to more than Rs4,700 billion by the end of this financial year.

The government has also reduced the target for income tax collection and federal excise duty while raising the sales tax collection target.

Similarly, the recovery target for Workers Welfare Fund has been increased, while the recovery targets for Workers Profit Partnership Fund and Capital Value Tax have been reduced.