ISLAMABAD: Dr Miftah Ismail, Adviser to the Prime Minister on Finance, Revenue and Economic Affairs, has said that the Federal Board of Revenue (FBR) is going to achieve all times higher revenue collection target of Rs 4 trillion by the end of current fiscal year.
Addressing the closing session of “Leaders in Islamabad Business Summit 2018”, Dr Miftah said that the FBR would set a historical record by marking an increase of more than 19 percent as compared to the revenue collections of the previous fiscal year.
“The economy of Pakistan has gained stability because of numerous measures taken by the government during the last five years,” he said, adding that the growth rate would remain 6 percent this year and the government would set a growth target of 7 percent for the next fiscal year.
“We will conclude the current fiscal year within 5% fiscal deficit limit and reduce it down to 4.5% next year and even 5% deficit is reasonable in a final year of any elected government. Furthermore, 6% GDP growth rate will be achieved this year despite projections by international financial institution for GDP growth rate at 5.5-5.6%.” he added
He said that the government would not introduce any new tax in the next year budget and yet achieve at least 0.3% increase in tax-to-GDP ratio with additional revenue of about Rs120 billion based on 10% increase in inflation and growth rate and by bringing into tax net about 300,000-400,000 fresh taxpayers.
He said that FBR was co-opting with National Database and Registration Authority (NADRA) for a potential 700,000 taxpayers and an exercise was currently in place to ensure that at least half of them come into the tax net next year.
He went on saying that on the recommendations of the FBR, the government would reduce individual tax rates and exempt from income tax annual income worth Rs1 million because tax rate on annual income of Rs400,000 at present was unrealistic and a burden on poor segment earning Rs30-40,000 per month. They would continue to file tax returns. He ruled out a reduction in other tax rates like 17% General Sales Tax (GST), saying that was not a consideration.
He said that the government has decided to take on board all major political parties for the upcoming budget ahead of the general elections. The government has already held first round of consultations with Pakistan People’s Party (PPP) leaders Syed Naveed Qamar and Sherry Rahman and the budget schedule had been agreed upon.
It is pertinent to note here that the two- day Leaders in Islamabad Business Summit is Pakistan’s most prestigious and well-attended business summit, which features 20 international speakers including distinguished professors from Ivy League Universities and global CEOs.
The theme for this year’s summit was “Disrupting the Future” where innovators, leaders and future thinkers will come together to present their ideas. The event was organized by Martin Dow in collaboration with Nutshell Forum and Ministry of Planning, Development and Reforms and was attended by business delegations from China, GCC and other regional countries.
The Leaders in Islamabad Business Summit provided a dynamic mix of individuals; a gathering of vibrant strategists, business thinkers, policy makers, innovators, ministers and parliamentarians.
The summit allowed leading business figures from around the world to present their ideas and effective business strategies in a discussion to address leadership and business concerns crucial to today’s world decision makers.