Budget 2021-22: FBR aims for over Rs2,500bn sales tax

ISLAMABAD: With the federal government planning to present the budget 2021-22 on June 11, the Federal Board of Revenue (FBR) has set sales tax collection target for the upcoming fiscal year at Rs2,506 billion.

Sources told ARY News that the sales tax collection target has been set at Rs2,506 in the upcoming budget 2021-22, 30 per cent higher as compared to the outgoing fiscal year’s target.

Also Read: PM-led NEC sets economic growth rate target at 4.8 pc for FY22

They said the tax body aims to collect Rs2,500bn sales tax on different goods while Rs6.61bn on services.

Sales tax collection stood at Rs1,415bn during the July-March period of the current fiscal year. The sales tax collection target for the fiscal year 2020-21 is over Rs1,925bn. The Federal Board of Revenue (FBR) had collected Rs1,250 sales tax during the financial year 2018-19.

Also Read: Budget 2021-22 to include ‘no new taxes’ on salaried person, raise in salaries

On Monday, the National Economic Council (NEC) led by Prime Minister Imran Khan set the economic growth rate target at 4.8 per cent for the next fiscal year.

Macroeconomic Framework for Annual Plan 2021-22 was approved by the National Economic Council during its latest session. Moreover, the council approved the gross domestic product (GDP) growth projections for the financial year 2021-22.

The proposed growth target of 4.8 per cent was approved with sectoral growth targets of 3.5 pc for agriculture, 6.5 pc for the industrial sector and 4.7 pc for the services sector.