Islamabad: The Federal Board of Revenue (FBR) has suggested the government to raise the holding period of immovable property and securities in a bid to generate more capital gains tax (CGT), a news source reported.
By increasing the holding period, the board will be able to generate revenue of PKR 20 billion. It has also recommended to impose presumptive taxes on offshore assets in a bid to generate additional revenue of PKR 5 billion.
FBR has already discussed its tax proposals – including inland tax, income tax, sales tax, and federal excise duty (FED) – with the Economic Coordination Committee (ECC).
Moreover, it has suggested the government to withdraw tax exemptions on withholding taxes for cottage industry; impose sales tax on retail prices of several goods, and introduce uniform value added taxes.
At present, the government is reviewing the board’s suggestion to impose PKR 729 billion additional taxes in the upcoming federal budget for the financial year FY2019-20. Out of the said amount, PKR 634 billion will be collected as additional taxes under Inland Revenue while PKR 95 billion will be generated through custom duties.