ISLAMABAD: Pakistan’s budget history’s largest revenue target has been fixed for tax collection in Fiscal Year 2024-25 budget.
The revenue collection target for the year has been fixed at 12,900 billion rupees with an increase of 3,440 billion in the upcoming budget.
Imposition of new taxes has been proposed in the budget for FY 2024-25 to generate 2,000 billion rupees additional revenues.
Initially six percent sales tax being proposed on petroleum products. Moreover, a budget proposal has been under the hammer to abolish all sales tax exemptions. An additional 550 billion rupees revenues are expected with the withdrawal of sales tax exemptions.
Moreover, to achieve the target of tax revenues, one percent hike in the sales tax rate is expected to generate around additional 100 billion rupees revenues. This one percent hike can be slapped over around 7,000 items, sources said.
Sales tax also likely to be imposed over the packed milk.
It is apprehended that these budgetary measures could unleash hike in inflation in the country.
