June 12, 2020 (MLN): The tax revenue target for the fiscal year 2020-21 is Rs 5464 billion, framing the COVID-19 situation and its subsequent impacts on the battering economy.
To set the target of Rs 3,500 billion deficit of the budget, the government has proposed a huge FBR's tax collection target of Rs 4963 billion which is the target set by the International Monetary Fund (IMF)in its latest round of meeting.
Of the amount, the FBR will be tasked to realize a revenue collection target of Rs 2043 billion through direct taxes, the indirect tax revenue collection target being Rs 2920 billion, while other tax revenue collection target is Rs 501.3 billion.
It is pertinent to mention that no new tax has been implemented in this budget owing to the adverse impact on the economy created by COVID-19.
In an instant reaction to a private media channel regarding budget FY2020-21, a renowned economist, Dr Hafeez Pasha said that there will be a big gap between income and expenditure and the revenue target seems to be unrealistic in nature considering the economic crisis facing by the country.
Targeting 2.1% GDP growth in FY21 also raises question of whether economic and business activities would come back to normalcy in this unprecedented time.
