Islamabad, November 15, 2022 (PPI-OT):Federal Board of Revenue (FBR) has not been able to achieve Sales Tax and Custom Duty targets due to import compression. This was communicated to the Standing Committee on Finance and Revenue in its meeting held in the Committee Room 7, Parliament House, Islamabad under the Chairpersonship of Mr. Qaiser Ahmed Sheikh, MNA.

2. The Committee was briefed regarding tax targets achieved by FBR. There has been an increase in income tax target collection however sales tax and custom duty targets have not been achieved. The main cause is import compression (of about 16.9 percent till end of October for current fiscal year).

Additionally, the Committee was also told that as of yet, 2.581 million tax filers have submitted returns opposed to 3.6 million filers last time (although time in filing returns is still remaining). The committee showed its concern regarding lack of increase in tax filers and taxes being taken from existing filers only.
The committee also showed its apprehension regarding tax regime in flood inundated areas such as Khairpur.

3. The Committee was also briefed regarding meetings with IMF and World Bank. It was informed that government has had fruitful discussions with all multilateral stakeholders regarding economic situation of country after massive flooding.

The committee was informed that 30 billion dollars economic cost to Pakistan has been estimated by multilateral institutions due to recent floods.

Furthermore, it was estimated that Pakistan’s financial needs will be around 15 to 16 billion dollars, nine million people are expected to go below poverty line and growth rate will be lowered by 2 percent. Multilateral institutions have been receptive to the economic situation of Pakistan due to floods and talks are ongoing for frontloading certain programmes. A positive response from multilateral institutions such as Asian Development Bank, World Bank and Asian Infrastructure Investment Bank is anticipated.

3. The meeting of the Committee on Finance and Revenue was presided over by its Chairperson Mr Qaiser Ahmed Sheikh, MNA and attended by Members National Assembly; Ms Nafisa Shah, Ch.
Muhammad Barjees Tahir, Ms. Wajiha Qamar, Engr. Sabir Hussain Kaim Khani, Mr Nasir Iqbal Bosal and Chaudhary Khalid Javed. The meeting was also attended by Minister of State for Finance and Revenue, Ms Aisha Ghaus Pasha, Secretary Finance, Chairman Federal Board of Revenue and other government officers.

For more information, contact:
Secretary,
National Assembly of Pakistan
Automation Centre, National Assembly Secretariat,
Parliament House, Islamabad, Pakistan
Tel: +92-51-9221082-83
Fax: +92-51-9221106
Email: assembly@na.gov.pk
Website: www.na.gov.pk