FBR seeks budget proposals from stakeholders

ISLAMABAD, Feb 26: The main tax machinery of the country has formally launched pre-budget preparations by asking all stakeholders to submit their proposals for consideration in the next budget amid plans to bring potential taxpayers to the tax net for generating additional revenue. "We have sought proposals from all chambers, associations and other stakeholders to submit their tax-related proposals to the Federal Board of Revenue," FBR spokesperson Riffat Shaheen Qazi told Dawn on Friday. She said the proposals would be analysed to bring them in conformity with the government's priority of plugging loopholes in tax collection. As part of the exercise, the FBR's customs department has provided to the chambers, corporate sector and associations a format seeking proposals relating to changes in the customs tariff rates, rules and procedures and the Customs Act, 1969. The government has increased the revenue target from Rs1,604 billion to Rs1,630 billion for the current fiscal year to bring down the ballooning fiscal deficit by the end of June. "We have to reach this target as per the commitment made to donors," a senior tax official said. This means that Pakistan's tax-to-GDP ratio will be still at 9.5 per cent, which is much lower than the international practice. The official said it had been proposed that the ratio would be raised to 10 per cent next year, but for that purpose the revenue collection should be around Rs2 trillion. Ms Shaheen said that FBR chairman Salman Siddique had convened a meeting of all commissioners of the Inland Revenue on March 8. Finance Minister Hafeez Shaikh would also attend the meeting that would review this year's revenue collection target and discuss new tax proposals. "The commissioners will be updated on the recently-implemented tax reforms and restructuring of the tax machinery," the FBR spokesperson said. The income tax collection over the past few months remained short of target, which has compelled the FBR to initiate a drive against non-filers, especially corporate entrepreneurs.