Despite The Introduction of Some Tax

Despite the introduction of some tax and administrative measures in the fiscal law of 2019, the government missed its revenue collection goal of 14 billion rupees in July. Officials said the drop was again due to a 30-34 percent decline in imports in the first month of the current fiscal year. The Federal Reserve Board (FBR) insisted in July that it had collected a provisional 277 billion rupees.

Projected target of Rs. 29.1 billion or Rs. 1.4 billion

Compared to the projected target of Rs. 29.1 billion or Rs. 1.4 billion or 4.8 pc. Compared with last year's 251 billion ringgit, July sales rose 10.35%. "This growth is largely driven by a slightly better performance of domestic taxes," a senior tax official told us. The official said that despite the fact that the July sales tax return is received in August and the withholding tax is applied to the new tax rate, the full impact of the budget action will appear from next month, Said that growth will be achieved. Will be deposited next month.

He said tax collected at the import stage (withholding tax, sales tax and federal excise tax (FED)) fell sharply during the month under review. The government limited the flow of revenue from the last budget," he said. In addition to other administrative measures, the final budget has introduced a method of measuring over Rs.770 billion. Based on this, the government set a sales target of Rs.55.5 trillion for fiscal year.

In the closing period, revenue collection started at Rs3.818tr against the target of Rs4.398tr, resulting in a deficit of Rs580bn. The officer said that in 2018 the tax year increased by about 700,000 to a total of 215.4 billion. Given the tax, the total customs duties amounted to Rs. 750 million and Rs. 46 billion. On the other hand, the collection in customs fell 5% compared with last year's 50 billion RMB.

Internal tax - Income tax, sales tax and FED levy amounted to Rs. 234 billion, corresponding to Rs. 234 billion, declining Rs. 5.6 billion. The amount of income tax increased by Rs. 2.9 billion to Rs 96.6 billion from Rs 93.2 billion in the same month of last year.

Last year, the sales amount reached Rs 123 crore, which was Rs 29 crore compared to Rs 94 crore last year. The FED collection, on the other hand, recorded Rs. 11.3 billion (Rs11bn), up Rs.17bn (Rs17bn).

CNIC requirements are mandatory

However for B2B transactions, CNIC requirements are mandatory and the government will not withdraw this decision at any cost. It was released by Muhammad Hammad Azhar, the finance minister, and covers a speech on the budget at the Islamabad Chamber of Commerce. Azhar said the retail sector contributes 20% of GDP, but only contributes 0.25pc of tax. He added that 80-90% of retailers were not registered for tax deductions and that the government is willing to introduce the sector into the tax system.

The minister is aiming to increase the government's tax revenue by 35 percent in 2019-20 and urged the business community to work with the government. He pledged to experience deindustrialization because of the misguided policies of the previous government and that the current government would further strengthen the industry. For this purpose, the mission of importing industrial machinery will be reduced in the next budget," he said.

At the import stage, Azhar had collected 40% of the tax revenue and the government wanted to rationalize it. He added that major policy rates have been tightened to control inflation, with key inflation also declining, along with major interest rates. He said 40pc of electricity for high-volume products is being produced through imported fuel, and the government is working to produce energy through hydroelectricity and energy sources.

He also cautioned audiences that the Federal Board of Revenue (FBR) would be automated and would facilitate taxpayers and tax collectors more easily. He said the government has increased its circulation debt to Rs 45 billion in a year, while the government has announced its goal to reduce its circulation debt to 0% in two years.

FBR chairman would visit the ICCI

He convinced attendees that he and the FBR chairman would visit the ICCI to resolve the business community's tax problems. ICID Chairman Ahmed Hassan Moughal also said that tax rates are high in Pakistan, where people do not pay taxes. He urged the government to lower tax rates and expand the tax base to improve tax revenues.

He suggested that reducing the sales tax rate to one digit level could reduce business costs and inflation. The ICCI chairman also said the government should cut tariffs on industrial machinery imports to improve industrialization, employment, exports and tax revenues.
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