Dr Ashfaq Ahmed out, Asim Ahmed in as FBR chairman
The federal government has removed Dr Ashfaq Ahmed from the position of FBR chairman and appointed Asim Ahmed.
ISLAMABAD: The federal government led by Pakistan Muslim League Nawaz (PML-N) has removed Dr Ashfaq Ahmed from the position of Federal Board of Revenue (FBR) chairman and appointed Asim Ahmed.
Former finance minister Shaukat Tarin had criticised the expected move of the PML-N government and said in a Twitter message, “Seems PDM govt is changing a competent and honest FBR chairman who will deliver 30% growth in revenues this year. If we add the waived Pet/diesel sales tax the collection goes up to 6.4trn or 36%+, highest in the history, what message are we sending, that merit doesn’t count!!”
Seems PDM govt is changing a competent and honest FBR chairman who will deliver 30% growth in revenues this year. If we add the waived Pet/diesel sales tax the collection goes up to 6.4trn or 36%+,highest in the history, what message are we sending, that merit doesn’t count!!
— Shaukat Tarin (@shaukat_tarin) April 26, 2022
Sources told News360 that Prime Minister Shehbaz Sharif summoned the session of the federal cabinet today in which the government approved the decision to appoint Dr Asim Ahmed as the new FBR chairman. Dr Ashfaq Ahmed has been appointed to FBR top slot in August 2021.
Economists suggested that there is a need to appoint the FBR chairman on a long-term basis in view of the deteriorated economic situation of the country. It may be noted here that the new FBR chairman would serve in the position for only four months and Asim Ahmed will be the eighth FBR chairman in the last four years.
The new appointment has raised serious questions regarding the PML-N government’s seriousness to revive the national economy.
During the tenure of former FBR chairman Dr Ashfaq Ahmed, the country witnessed several achievements on the economic front which will be definitely affected by the new appointment.
According to statistics, Pakistan’s fiscal deficit in nine months in FY22 stood at 4% of GDP. During the same period last year, the fiscal deficit was standing at 3.6% of GDP.
The fiscal deficit amounts to Rs2,565 billion versus Rs2,103 billion in the same period last year, whereas, the federal revenue collection amounts to Rs4,383 billion and the collection from provinces was Rs438 billion in the nine months of the FY22 versus Rs3,394 billion and Rs370 billion respectively.
The tax to GDP ratio in the same period of FY22 was 9.2% versus 9% for the nine months of FY21.
The direct tax amounts to Rs1,579 billion versus Rs1,256 bln. The indirect taxes stood at Rs2,805 billion as compared to Rs2,149 billion, customs Rs715 billion versus Rs541 billion and sales tax Rs1,866 billion versus Rs1,416 billion.
The collection from petroleum Levy in the nine months of FY22 amounted to Rs125 billion versus Rs369 billion of the same period last year.
The markup payments amounted to Rs2,118 billion and defence spending Rs883 billion versus Rs2,103 billion and Rs783 billion in the same period year ago.
