Annual tax collection target for next fiscal year of Rs 4.63 trillion ambitious, says Hafeez.

ISLAMABAD -- Adviser to Prime Minister on Finance and Revenue Abdul Hafeez Shaikh on Tuesday termed the annual tax collection target of Rs 4.63 trillion for next fiscal year as ambitious, which would be collected once country's economic activities accelerate after Covid-19.

Address a post budget conference arranged by ICAP, he said that government has announced the budget 2020-21 amid providing relief to the people and businessmen.

He further said that government has not increased any tax in the budget, which happened for the first time in country's history. The government has taken the decision for not putting additional burden on existing taxpayers as economy contracted due to Covid-19, he said.

Instead of new taxes, he informed, the government has provided relief to the people and businessmen in the budget. Giving a breakup of the relief given in taxes, the Adviser said regulatory duty on 1,623 tariff lines of raw materials are totally being done away. Similarly, the government has reduced regulatory duty on semi finished raw materials.

He further said that government has reduced Federal Excise Duty (FED) on cement from Rs 2 per kg to Rs1.75 per kg. The duty on hospitality sector is being reduced from 1.5 per cent to 0.5 per cent, he added.

He said taxes and duties are being abolished on the...