To raise indirect taxes ratio
The incumbent coalition government is all set to present its first pro-people, business-friendly and progressive budget for the fiscal year 2022-23 in the Parliament tomorrow (Friday), with special focus on fiscal consolidation to contain budget deficit.
The budget would be presented by Federal Minister for Finance and Revenue, Miftah Ismail.
The budget had been formulated while considering the existing challenges being faced by economy at domestic and international fronts. Hence, mitigating people’s sufferings, transforming agriculture sector, promoting Information Technology, boosting industrial and bolstering businesses would be the main focus of the document, sources said. In addition to fiscal management, revenue mobilization, measures for economic stabilization and growth, reduction in non-development expenditures; boosting exports besides job creation and people friendly policies for the socioeconomic prosperity of the country would feature in the budget. It would also focus on social sector development besides introducing reforms for improving governance and boosting private sector investment.
On the revenue side, the government would introduce measures for bringing improvements in the system of tax collection, broadening the tax base, and facilitation to tax payers. Sources said the preparations for the announcement of the federal budget for fiscal year 2022-23 continued in full swing in accordance with the prescribed timelines. The budget was being prepared in close coordination between all departments and ministries involved in budget related events including the presentation of the budget in the Parliament and launching of the Economic Survey, they added. The financial planners have suggested to fix the target of direct taxes at Rs2,560 billion in the next 2022-23 budget, whereas, the national gross income is expected to be in the region of around Rs9,000 billion in the next fiscal.
According to sources, the financial managers have suggested to raise the target of indirect taxes to the tune of Rs4,695 billion in the forthcoming budget 2022-23. Whereas, the target of indirect taxes ratio was set at Rs3,070 billion in the outgoing fiscal year. But later, the target was re-fixed at Rs4,272 billion.
Sources informed that the Federal Board of Revenue tax collection target has been suggested at Rs7,255 billion whereas, under the head of non-tax collection the government is expected to gross Rs1,626 billion. Meanwhile, the coalition government may unveil a nearly Rs9.5 trillion budget that has been prepared on a highly ambitious target of a mere 4% increase in expenses but one-fourth surge in revenues aimed at meeting a core condition of the International Monetary Fund. Sources say the federal government has finally agreed to exhibit a primary budget surplus of nearly Rs200 billion by planning fiscal consolidation of nearly Rs1.8 trillion or 2.2% of the Gross Domestic Product in the next fiscal year.
