ISLAMABAD: The Federal Board of Revenue (FBR) said Tuesday Pakistan’s income tax collections failed to meet the May 2020 target due to the ongoing coronavirus pandemic.
The income tax collections were also unlikely to meet the target in April, FBR spokesperson Hamid Ateeq Sarwar said during a press briefing here. A further reduction in the prices of petroleum products would increase the revenue shortages, he added.
Sarwar – a member of the FBR’s Board and working in the body’s Inland Revenue Policy and Facilitation and Taxpayers Education departments – said the tax collections dipped due to the coronavirus pandemic. As opposed to May’s target of Rs500 billion, the income tax collections amounted to Rs300 billion, while the figure was expected to clock in at Rs200 billion for ongoing April.
He added that the government was slashing prices for the benefit of common people and that permission to import medical equipment was given according to instructions from the Cabinet.
Relief, he added, was given to the construction sector as per Prime Minister Imran Khan’s directives. “If someone, including builders and [real estate] developers, wished to construct houses, they should inform by December 31 and then they would not be asked about their sources of income,” he said.
However, in doing so, they should ensure they ready their projects by September 30, 2022.
The FBR spokesperson noted that these measures were introduced to provide employment to labour and bolster economic activity in Pakistan. Various taxes have been done away with or waived off for the construction sector, he added. – NNI
Income tax collections failed to meet May target owing to coronavirus pandemic: FBR
