In response to the International Monetary Fund (IMF) request to rescind assistance provided on June 10, the coalition government on Friday announced amended tax deduction rules for the salaried class.
The News reported on Saturday that the Federal Board of Revenue’s (FBR) target for tax collection for the fiscal year 2022–23 has been raised to Rs7,470 billion, an increase of Rs466 billion.
In order to get the money, the government had to take harsh steps, such as boosting the tax rates for high earners to raise Rs 120 billion for fighting poverty and Rs 35 billion for the salaried class.
For the upcoming fiscal year 2022–2023, the government imposed a 10 percent super tax on 13 high-earning sectors, which will cost Rs 80 billion in income.
With the aid of all these taxing methods, the FBR would be able to boost the tax collection target up to Rs7,470 billion. The exchange rate depreciation will also allow the FBR to collect more taxes at the import stage in the budget for 2022–2023
The government increased the Personal Income Tax (PIT) by Rs80 billion by first abolishing tax relief worth Rs47 billion and then increasing the tax amount by Rs35 billion. As a result, the FBR was expected to collect Rs235 billion from the salaried class in the upcoming budget, up from Rs200 billion in the preceding fiscal year.
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