Taxes of more than Rs700 billion, including the previous mini budget, are likely to be proposed in the upcoming fiscal budget. In consultation with the IMF, the annual tax target has been set at Rs9,200 billion. According to sources, the tax target for the next fiscal year has been decided in consultation with the IMF. The FBR will collect Rs1,900 billion additional tax in the next financial year as compared to the ongoing year. More than 30% tax has been proposed on mutual funds, real investment trusts for non-filers.

The budget is also expected to feature an increase in the withholding tax on imported luxury goods. The withholding tax on sale and purchase of property is proposed to be doubled for non-filers. The taxes imposed on retail and wholesale sector would likely be increased. The withholding tax on sale and purchase of prize bonds for non-filers is also likely to be increased.

The withholding tax on purchase and sale of plots for non-filers is proposed to be doubled. A decision has also been taken to adopt strict measures to document real estate transactions. Taxes are likely to be imposed on unused residential, commercial, industrial plots and farmhouses. Withholding tax is also expected to be imposed on machinery and commercial rent.

Credit: Independent News Pakistan-INP