Without a Tax Overhaul, Pakistan Cannot Meet Tax Targets

July 3, 2017 Taxation in Pakistan

Pakistan taxISLAMABAD – Pakistan has yet again failed to meet its targets for tax collections, a shortcoming that has led to renewed outcry from across the country.

Over the weekend members of the business community of Pakistan and a number of parliamentarians in opposition parties cried out for the government to thoroughly re-examine its tax policies, following another round of disappointing tax collections.

Over the previous financial year, the Federal Board of Revenue collected PKR 3 392 billion, however, the target for collections for the year was PKR 3 621 billion.

The shortfall of PKR 229 billion did not go unnoticed by the opposition Pakistan People’s Party or the business community, which claims that the government is not doing enough to meets its revenue targets or to grow tax revenues each year.

The Islamabad Chamber of Commerce and Industry is one of the main proponents behind the move towards tax reform, claiming that the government now needs to work in tangent with businesses to formulate new tax policy which would meet the revenue targets.

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