Pakistan’s health ministry has proposed a 30% hike in the tax rates for the cigarette industry in the upcoming budget 2021-22. The federal government is reviewing three different tax proposals.
According to media reports, tobacco companies, however, proposed no change to the tax rates and say they will bring the tax amount from Rs134 billion to Rs155 billion in the budget 2021-22.
The FBR has collected a tax amount of Rs134 billion during the current fiscal year.
Multinational giants have offered no change in the tax rates of the two-tier system and assigned to add Rs21 billion to FBR’s tax collection amount.
Moreover, local cigarette manufacturers from Mardan and AJK have suggested the government reduce excise duty on local brands, but they did not make any commitment to increase revenue.
Budget 2021-22: FBR Aims For Over Rs2,500bn Sales Tax Return
The federal government plans to present the budget 2021-22 on June 11, the Federal Board of Revenue (FBR) has set a sales tax collection target for the upcoming fiscal year at Rs2,506 billion.
The sales tax collection target has been set at Rs2,506 in the upcoming budget 2021-22, 30% is advanced as equated to the outbound fiscal year’s target.
They said the tax body aims to collect Rs2,500bn sales tax on different goods while Rs6.61bn on facilities.
Earlier on Monday, the National Economic Council (NEC) drove by Prime Minister Imran Khan set the financial development rate focus at 4.8% for the following monetary year.
Macroeconomic Framework for Annual Plan 2021-22 was supported by the National Economic Council during its most recent meeting. Additionally, the committee supported the (GDP) development projections for the monetary year 2021-22.
The proposed development focus of 4.8% was endorsed with sectorial development focuses of 3.5 pc for agriculture business, 6.5 pc for the urban area, and 4.7 pc for the administration area.