Government to set Rs.5.5 trillion revenue target in next budget

[Shahzaz ud din]

Government to set Rs.5.5 trillion revenue target in next budget
By
admin
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May 25, 2019

ISLAMABAD, May 25: Advisor to Prime Minister on Finance Abdul Hafeez Shaikh Saturday informed that the government was setting the revenue collection target of Rs 5.5 trillion for next financial year of 2019-20.

He said in order to collect the additional revenues, more people and commercial companies would be brought in to tax net and no extra burden would be put on those who were already paying taxes. However he

said the government was taking hard measures to put more burden on the tax evaders.

He hoped that the new Chairman of Federal Board of Revenue (FBR) Shabbar Zaidi who was quite an able and hard working person, would meet the challenge of an ambitious target.

Addressing a press conference here, Hafeez Shaikh said at present 360 companies were paying 85% of total revenue of the country, while there are thousands of other companies who were not still paying any taxes.

He said in order to bring people in the tax system, the government would utilize the data of gas, electricity consumers, bank account holders and companies registered with the Securities and Exchange Commission of Pakistan (SECP).

He pointed out that there were as many as 341,000 commercial consumers out of which only 40,000 were registered with the FBR.

Similarly, Shaikh said out of total 50 million bank accounts, only 10% were registered with the FBR.

The government he said was determined to bring all the tax evaders to tax net in order to increase tax revenues.



(APP)

 

[Pakistansdefender]

Great.

 

[Syed1.]

Excellent

 

[WarKa DaNG]

Hope they don't miss them as usual

 

[dilpakistani]

5.5 trillion Pkr is merelly 36 billion USD... it is 9 billion dollars short of 2017-2018 Revenue. Massive economic shrink that is...

GDP size is expected to shrink from 305 bln USD to 270-275 billion USD... Reverse gear

 

[Mrc]

Step wise... Good decision

 

[Pakistansdefender]

All of them taken by provinces...
And incase of balochistan and gb not even able to spend them...
Federal government should be able to spend 30 per of province share as they want, the rest 70 oerce to is given to province.

 

[Strike X]

We need HMRC alike in Pakistan. Reliable Tax system

 

[PakAlp]

5.5 trillion Pkr is merelly 36 billion USD... it is 9 billion dollars short of 2017-2018 Revenue. Massive economic shrink that is...

GDP size is expected to shrink from 305 bln USD to 270-275 billion USD... Reverse gear

That doesn't make sense. According to online information Pakistan revenues for last year were 47 billion. So it would be 9 to 11 billion shortage. So why is the government trying to say it will be some kind of big achievement

Our forex are 7 Billion and will increase to 15 billion with loans(this is only due to borrowing)

Pti government would be a success by 2023 if our revenues increase from 47 Billion to 80 Billion. Forex from 7 billion to 40 billion and export from 23billion to 35Billion(they have already increased to 24Billion)

Revenue increase and forex increase is highly possible if the government clamps down on the non tax paying industries and big businesses. According to data i 2019 more than 50% revenues are not collected due to corruption/fraud. So even 30% increase in 5 years can get us pass the 80 Billion mark

Keep in mind during the PML N government data on revenues was 47 Billion and forex 30 Billion. This was all based on less than 50% of revenue collections

 

[Shahzaz ud din]

5.5 trillion Pkr is merelly 36 billion USD... it is 9 billion dollars short of 2017-2018 Revenue. Massive economic shrink that is...

GDP size is expected to shrink from 305 bln USD to 270-275 billion USD... Reverse gear

Kindly share the details for our knowledge.Thanks in advance

 

[ali_raza]

with depreciation this is even less then previous collection in dollars terms
but guess what our problem wasn’t collected money but money lost in useless stuff so belt tightening is wht we will go for

 

[maithil]

5.5 trillions rupees is a very tall task. Will be extremely difficult to pull this off. A 36% increase in tax collection will make life miserable. Even then the collection in dollar terms will be much less than what Govt got in 2017-18. This is some wizardry by IK's team.

 

[dilpakistani]

Kindly share the details for our knowledge.Thanks in advance

Its simple bro. We don't earn in dollars ... our economy size is defined in RS. devaluation will bring down total GDP size as well. ... last year 4.7 trillion revenue collection was 47 billion dollars... next year if 5.5 trillion Rs which in it self is a difficult target is just 36 billion dollars.

 

[Syed1.]

Its simple bro. We don't earn in dollars ... our economy size is defined in RS. devaluation will bring down total GDP size as well. ... last year 4.7 trillion revenue collection was 47 billion dollars... next year if 5.5 trillion Rs which in it self is a difficult target is just 36 billion dollars.

Wrong info on many fronts. Last year (meaning this year) the revenue collection is expected to be Rs 4.1 trillion. The current dollar exchange rate is Rs 152 to 1$. Therefore approximately $26b will be collected by the end of the year (30th June 2019).

Then for the new financial year (1st July 2019 to 30th June 2020), the target is Rs. 5.5trillion. Assuming the Rs continues its downward trend and goes to Rs 165 to 1$ then AT THE END of the year we would have collected $33b. If by some miracle the ruppee remains at its current rate we would have collected $36b.

However, this discussion is completely irrelevant because the money collected from Pak is used in Pak and there is no exchange into dollars therefore the dollar exchange rate does not even come into the picture.


I recommend you gain the requisite knowledge before trying to give expert opinion.

 

[Fahad Khan 2]

Why are we converting our Tax collection in Dollar? The Tax is colleted in PKR and used in PKR in Pakistan. Our dollar earning comes from export and remittance.

Further nominal GDP calculation is not accurate to define our economy because our economy is cheap. In term GDP PPP our economy size is above 1 trillion$.