ISLAMABAD: The Federal Board of Revenue (FBR) has been tasked with a 31 percent higher tax collection target for the fiscal year 2023-24, surpassing the target set for the outgoing fiscal year.
Finance Minister Ishaq Dar, while addressing the National Assembly on Saturday, announced an increase in the initial tax collection target for the FBR from Rs9,200 billion to Rs9,415 billion for the next fiscal year.
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The FBR is currently striving to meet the tax collection target of Rs7,200 billion set for the ongoing fiscal year 2022-23. However, achieving the new target, which represents a 31 percent increase, will pose a significant challenge for the national tax agency. This challenge stems from the prevailing economic slowdown and the complex political landscape.
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Experts in the field of taxation, as well as members of the business community, have already expressed their concerns regarding the ambitious tax collection target set for the next fiscal year. They believe that meeting such a high target may be difficult given the current economic conditions and the country’s political situation.
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The FBR will need to adopt comprehensive measures and implement effective tax collection strategies to achieve the increased target. This may involve improving tax administration, broadening the tax base, curbing tax evasion, and enhancing compliance among taxpayers. The success of these initiatives will be crucial in meeting the heightened tax collection goal.
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Furthermore, it is imperative for the government to consider the potential impact of this increased tax burden on businesses and individual taxpayers. Striking a balance between revenue generation and the overall economic growth is essential to ensure sustainable development and stability.
As the fiscal year 2023-24 approaches, the FBR will face the challenge of meeting the higher tax collection target amid economic uncertainties. The success of this endeavor will require close collaboration between the government, tax authorities, and various stakeholders to create a conducive environment for tax compliance and economic growth.
