Government decides not to increase sales tax in upcoming budget:Member FBR

Lahore: Federal Board of Revenue has said the government has decided not to put extra burden on masses through increasing sales tax in upcoming budget.

While talking to media,Member FBR Shahid Hussain Asad said rate of sales tax will remain 17 percent in the budget.Instead of increase in sales tax, FBR will reinforce its collections mechanisms,he added.

Responding to a question regarding shortfall in revenue collections for current fiscal year, he said FBR has taken special initiatives to meet 2345 billion rupees’ target. He rejected reports of imposing any emergency in FBR to achieve the targets. He said that FBR, in last two months of current financial year, has to collect slightly over 600 billion rupees. He expressed confidence that FBR will cover the shortfall.

Shahid Hussain Asad said FBR cannot end 500 billion rupees tax exemptions due to several international agreements such as preferential trade agreements (PTAs) with different countries.