Govt aims to generate Rs1.6tr from non-tax revenues in upcoming FY

In annual budget 2020-21, government had set tax collection for FBR at Rs4,863 billion and non tax collection at Rs1,610 billion Amount could further increase if govt completes privatisation of few PSEs

ISLAMABAD            -         The government has once again projected to generate handsome Rs1.6 trillion from the non-tax revenues in the upcoming fiscal year, which would help in controlling budget deficit.

The incumbent government had projected Rs1.1 trillion from the non-tax revenue in the ongoing fiscal year, which later had surged to Rs1.6 trillion. Officials believed that amount could further increase if government completes the privatisation of few public sector entities, which halted due to Covid-19. Meanwhile, the government has once again estimated to generate Rs1.6 trillion from the non-tax revenues in next fiscal year 2020-21.

In annual budget 2020-21, the government had set tax collection for Federal Board of Revenue (FBR) at Rs4863 billion and non tax collection at Rs1610 billion.

The budget documents showed that in non-tax collection, the government would collect Rs501.3 billion as levies and other taxes, Rs210.7 billion from income from property and enterprise, Rs645.6 billion from receipts from civil administration and other functions and Rs252.6 billion from miscellaneous receipts.

The breakup of Rs501.3 billion to be collected from levies and other taxes showed that government would collect Rs450 billion from petroleum levy, Rs15 billion from Gas Infrastructure Development Cess, Rs10 billion as Gas Development Surcharge and Rs20.5 billion from Islamabad Capital Territory Taxes and Rs5.8 billion as mobile handset levy.

Meanwhile, the breakup of Rs210.7 billion, which would be collected from income from property and enterprise showed that Rs27 billion would be generated from Pakistan Telecommunication Authority (PTA) 3G-4G licenses, Rs26.8 billion as markup from provinces, Rs93.35 billion as markup from public sector entities and Rs60.98 billion from dividends.

The documents showed that government would collect Rs645.6 billion from receipts from civil administration and other functions. The government has projected to generate Rs620 billion from profits of State Bank of Pakistan, Rs18.4 billion as defence receipts, Rs3.4 billion from general administration, Rs1.198 billion from law and order receipts, Rs1.097 billion from community services and Ra1.45 billion from social services in the upcoming fiscal year.

The details of Rs252.6 billion from miscellaneous receipts showed that government has estimated to collect Rs53.8 billion as royalty on natural Gas, Rs28.05 billion as Extraordinary Receipts (UNO), Rs23 billion royalty on crude oil, Rs25 billion as citizenship, naturalization & passport fee, Rs17 billion as discount retained on local crude price, Rs8 billion as windfall levy against crude oil, Rs5.52 billion as petroleum levy on LPG, Rs22.5 billion as foreign grants and Rs2.096 billion as economic services.

Meanwhile, the government has also projected to collect Rs67.6 billion as others in non-tax revenues for the next financial year, 2020-21.

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