ISLAMABAD: The Federal Board of Revenue (FBR) announced on Friday that revenue collection touched Rs1,068 billion mark till Feb 22, which is 26 per cent higher than the collection of Rs847 billion in the corresponding period of the previous fiscal year.

The Tax Reforms Coordination Group (TRCG) at its meeting under the chairmanship of Adviser to Prime Minister on Finance, Abdul Hafeez Shaikh, recommended that the tax base be broadened and documentation be increased.

There should be a gradual shift from the presumptive tax regime with an increase in the rate for presumptive tax regimetowards eventual reduction in tax rate under normal tax regime, it was further recommended.

FBR chairman Mumtaz Haider Rizvi apprised the group of the taxes collected under various heads and administrative measures taken in this regard.

The group discussed the proposed changes in implementation of Capital Gains Tax aimed at simplifying the mechanism, improvement in its enforcement and broadening of the tax base.

The committee formed an Implementation Group, consisting of TRCG members, FBR officials and SECP representatives, to ensure implementation in line with the law.

Hafeez Shaikh said that the guiding principles of the next federal budget should be to continue with the approach of simplification of taxes, avoidance of increase in taxes or rates of taxes, fiscal incentives for growth and generation of investment and employment.

He emphasised the need for an accelerated drive for direct tax collection while providing relief to the existing taxpayers.

The TRCG members, who attended the meeting, included Deputy Chairman of Planning Commission Nadeem-ul-Haq, SECP Chairman Mohammad Ali, Tax Reforms Core Group members Abdullah Yusuf, Arshad Zuberi, Shabbar Zaidi, Ashfaq Tola, Ali Jameel Yousuf and Mohammad Arshad Chaudhry.