Ambitious sales tax target of Rs2,560bn set for next fiscal year

Author: News Desk

The federal government has set a highly ambitious sales tax target of Rs2,506 billion for the next financial year 2021-22.

According to sources, the sales tax collection target has been set at Rs2,506 in the upcoming budget 2021-22, 30 percent higher as compared to the outgoing fiscal year’s target. A sales tax target of Rs2,500 billion has been set on goods for the next financial year 2021-22, while sales tax target of Rs6.61 billion has been set on services.

Sales tax collection stood at Rs1,415 billion during the July-March period of the current fiscal year. The sales tax collection target for the fiscal year 2020-21 is over Rs1,925 billion. The Federal Board of Revenue (FBR) had collected Rs1,250 sales tax during the financial year 2018-19. On Monday, the National Economic Council (NEC) led by Prime Minister Imran Khan set the economic growth rate target at 4.8 percent 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 percent was approved with sectoral growth targets of 3.5 percent for agriculture, 6.5 percent for the industrial sector and 4.7 percent for the services sector.

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