The government is likely to introduce direct and indirect taxes in next year's budget, which will be announced tomorrow (June 11).
The budget was presented by Federal Minister for Finance and Revenue for Shaukat Tareen.
Citing sources, Dawn reported that contrary to the government's claim that it would be a tax-free budget, the Imran Khan-led PTI government is expected to withdraw sales tax, income tax exemptions and direct in the next budget. Will announce indirect taxes. Minimize subsidized tax rates.
In a meeting with the business community, Tareen assured that taxes and duties would be rationalized to increase the taxpayer base.
The Associated Press of Pakistan said that although no new tax would be introduced, the government would introduce measures to improve the tax collection system, expand the tax base and facilitate taxpayers.
The government is likely to set a revenue target of Rs 5.8 trillion for the financial year 2021-22.
The Federal Board of Revenue (FBR) is expected to come close to its revenue collection target of Rs 7.7 trillion this financial year. But the government has increased the FBR's tax collection target by Rs 1 trillion for 2021-22.
The International Monetary Fund has also set a revenue target of Rs 5.8 trillion for Islamabad and wants the government to withdraw as many concessions as possible. Negotiations are underway between Islamabad and the IMF and a tax agreement is likely to be reached between the two sides.
The English daily The News had earlier reported that the PTI government intends to raise taxes on cigarettes by tobacco firms by 30 per cent, which did not propose any increase in the next budget.