Govt to collect Rs2.92t through indirect taxation

ISLAMABAD: The government’s reliance on indirect taxation for revenue will continue, as it has set the target to collect Rs2.92 trillion through indirect taxation alone whereas it will mop up Rs2.043 trillion revenue through direct tax measures. According to budgetary documents, the FBR in head of indirect taxation will collect Rs2.92 trillion which includes Rs640 billion through customs duties, Rs1.919 trillion through sales tax and Rs361 billion through federal excise. However, through direct taxation the FBR will collect Rs2.043 trillion which includes Rs2.036 trillion through income tax, Rs3.207 billion through workers welfare fund and Rs3.041 billion through capital value tax.

However, the tax collecting authority will also mop up Rs501.3 billion through other taxes which includes Rs20.475 billion through other indirect taxes, Rs5.8 billion through mobile handset levy and Rs25 million through airport tax.

In addition, the government will collect Rs15 billion through the Gas Infrastructure Development Cess and Rs10 billion through Gas Development Surcharge.

Moreover, the government has decided to increase the revenue target to be mopped up through the petroleum levy by 123.88 percent as now the government will collect Rs450 billion in next budgetary year 2020-21 as against the budgetary target of Rs216 billion in the outgoing fiscal.

However, through non-tax revenue measures, the government has estimated Rs1.108 trillion, which includes Rs210.7 billion to be collected through income from property and enterprises.

Similarly, the government will collect Rs645.6 billion through receipts from civil administration and other functions and Rs252.6 billion through miscellaneous receipts, which also include Rs5.5 billion through petroleum levy on LPG, Rs8 billion by windfall levy on crude oil, Rs54 billion through royalty on natural gas, and Rs23 billion through royalty on crude oil and Rs25 billion will be collected through citizenship, nationalization, passport and copyright fees.