The coalition government is considering introducing a range of new fiscal measures in the next budget to generate around Rs.300,000 in additional revenue in 202223 (fiscal year 23).
Dawn learned from official sources that it directs the Federal Board of Revenue (FBR) to finalize areas and sectors in the next couple of days.
The new tax measures include a proposal for a “luxury income tax” that would mimic a wealth tax if applied to taxing real estate, including large houses in posh neighborhoods, while also including luxury vehicle owners within the scope of the tax as part of the agreement to revive the stalled International Monetary Fund (IMF) programme.
PM Shehbaz Sharif’s broader directives focus on direct taxes, specifically taxing the incomes of the wealthy. The proposal also includes the extension and effective taxation of rental income. There will be no title for a luxury tax in the budget documents, but the spirit is to tax the rich.
The sources said that the government plans to avoid taxing sectors or products that could hurt the poor.
