FBR Intends to Levy More Duty on Bank Profits Than Rs. 550 Billion Revenues Shortfall
A proposal to increase taxes on banking profits is being considered as the Federal Board of Revenue (FBR) hopes to bridge a Rs 550 billion shortfall in collecting tax revenues for December sources told ProPakistani.
The proposed tax augmentation may fetch up to Rs100 billion in additional revenues.
To cushion the effect on banks, FBR may provide some relief in the form of relaxing their advance deposit ratios. Such relief would come at the cost of either. the treasury or the private sector, to encourage. it to bear the increased tax burden. In the absence of this tax increase, FBR officials feel that achieving the revenue target will be a daunting task.
The proposed increase in tax would be implemented effective immediately, in case approved. FBR has the target of collecting Rs. 1.4 trillion in taxes in December, though the current Rs. 356 billion revenue shortfall during. July to November does not seem to meet that milestone.
This step is the part of efforts by the FBR to bridge up the gap to meet their ambitious revenue targets.
