FBR 'sets' Rs12,900bn tax collection target for FY2024-25

ISLAMABAD: The Federal Board of Revenue (FBR) has ‘fixed’ the Rs12,900 billion tax collection target for the upcoming fiscal year 2024-25, ARY News reported, citing sources.

Preparations for the budget 2024-25 are underway. Sources privy to the development said that the economic team briefed PM Shehbaz Sharif about the tax collection target by the FBR for the next fiscal year.

The premier was briefed about the ending sales tax exemption on the food items and increased tax duties on the imported items in the upcoming budget.

Furthermore, the increase in sales tax on the supply of imported food items and solar panel is proposed for the budget 2024-25.

The premier has directed the economic team to finalise the proposals.

Read more: Sugar, rice, flour, milk prices likely to ‘increase’ in budget 2024-25

Earlier, it emerged that Inflation will likely to increase in the 2024-25 federal budget as the International Monetary Fund (IMF) has ‘asked’ Pakistan to reduce sales exemptions further.

As per details, the prices of milk, tea, sugar, rice, flour, and packed milk are likely to increase in the budget 2024-25 as the international lender has asked Islamabad further to reduce the sales tax exemptions for fresh loan.

The IMF has demanded imposing a 5-10% sales tax on the zero-rated sales tax sector, the sources said and added that pressure is being asserted to end tax exemptions in FATA and PATA by June 30.