Islamabad: The government is considering the introduction of appropriate taxes, including a wealth tax on movable assets, along with several crisis relief measures under Budget 2020-21, according to a news report.
The proposal to introduce the wealth tax has come from the Federal Board of Revenue (FBR) but the final decision on the matter is to taken by the Prime Minister’s Advisor on Finance Dr Abdul Hafeez Shaikh.
The board recently shared the details of some of the taxation and relief measures being considered for budgetary inclusion in a meeting with Dr Shaikh. During the session, the advisor asked the FBR to abolish taxes that yield low revenue and focus, instead, on fewer regulatory measures that yielded greater revenue. He also asked the board to analyse the total numbers of taxes being paid by taxpayers and the corresponding revenue that its existing measures had so far generated.
Reportedly, the government is looking at a revenue collection target of PKR 5.1 trillion under Budget 2020-21 against an expected collection of PKR 3.9 billion (which would mean a growth of about 31%).