The Pakistan Business Council (PBC), on Wednesday, warned the government about the repercussions of its increase tax collection target for the next fiscal year.
The PBC stated that the government will have to impose new taxes amounting to Rs 800 billion in order to meet the revenue generation targets given by the International Monetary Fund (IMF).
The council also highlighted the need for significant reforms at the Federal Board of Revenue.
“The economy has to be improved further for the upcoming fiscal year in the wake of the crisis. Before revision in the taxation targets, reforms at FBR should be considered,” said the statement issued by PBC.
PBC officials have also advised the government that 34 per cent increase in tax is impractical.
Furthermore, the body also highlighted IMF’s reports which state that the interest rate should be kept at 11 per cent along with the prediction of inflation being somewhere around 8 per cent in the upcoming fiscal year.
In addition to it, PBC has urged the government to revive the zero-rated facility for five export-oriented sectors to ease the burden of sales tax and various other taxes, as the export industry is under extreme financial stress due to mass cancellation of export orders amid COVID-19 crisis.
