ISLAMABAD: The Federal Board of Revenue (FBR) has drawn up proposals for new tax measures amounting to nearly Rs 300 billion to be implemented through the promulgation of the Tax Laws Amendment Ordinance, 2023.
Sources told the Business Recorder on Wednesday that the decree is expected to be issued within the next 7-10 days. Initially, the revenue impact was estimated at Rs 200 billion, which increased to Rs 300 billion. The revenue impact of the proposed withholding tax on non-filer banking is nearly Rs 45 billion.
The three percent flood levy could bring in an additional revenue of Rs 60 billion. The proposed hike in capital value tax rates on imported and locally assembled vehicles is estimated to generate an additional revenue of Rs 10 billion.
The proposal to levy a tax on banks’ foreign exchange income is estimated to generate Rs 20 billion. The proposal to increase the Federal Excise Duty (FED) on sugary drinks will fetch Rs 60 billion. The proposed impact of further increase in FED on cigarettes has been estimated at Rs 25-30 billion.
The proposed increase in advance tax rate on purchase/sale of real estate will generate around Rs 20-30 billion.
The proposed withdrawal of sales tax exemption on imports of raw materials/factors of production used in the manufacture of export goods under the ‘export facilitation regime’ has a revenue impact of Rs 20-25 billion. The said proposals are under discussion between the FBR and the Finance Ministry but are yet to be finalised. After the proposals are approved, the Presidential Decree will be issued, sources added.
The government, under the revenue emergency measures, has agreed with the International Monetary Fund (IMF) to increase the FED on sugary drinks/cigarettes and withdraw sales tax exemption to exporters if a month’s revenue collection figures are underperforming.