The Federal Board of Revenue (FBR) has proposed a tax target of Rs12,900 billion for the upcoming fiscal year 2024-25.
According to the 24NewsHD TV channel, the proposal included an increase of Rs3,485 billion in the tax target.
The sources said new taxes are also being considered to generate an additional Rs2,000 billion in revenue.
According to sources, a 6% sales tax on petroleum products is proposed initially. The 6% sales tax on petroleum products is expected to generate approximately Rs. 600 billion in revenue.
The sources said all sales tax exemptions are being considered for removal in the finance bill for the next fiscal year 2024-25. A proposal to impose a sales tax on packaged milk is also under consideration.
The sources said ending sales tax exemptions is expected to yield an additional income of around Rs550 billion.
The sources said there is a possibility of increasing the sales tax rate by another 1% to meet the additional tax target and raising the sales tax rate could generate an additional Rs 100 billion in revenue. The sales tax rate would increase from 18% to 19%.
There is a proposal to increase import duties for commercial importers by 1%. This increase in duties for commercial importers is estimated to generate Rs50 billion.
An increase in the sales tax rate is likely to raise inflation in the next fiscal year.
The channel reported that all tax proposals for the upcoming budget have been shared with the International Monetory Fund (IMF).
Reporter: Waqas Azeem