The government is exploring possibly increasing the General Sales Tax (GST) to raise an estimated 650 billion rupees in revenue.
As part of a forthcoming mini-budget, authorities are looking to tighten regulations on non-filers and those who underreport income. Additional steps under consideration include raising the withholding tax on property transactions and increasing the GST on certain goods, such as agricultural machinery.
It is yet to be determined how much of the targeted revenue will be collected through stricter enforcement and how much will result from new tax hikes.
In agreement with the International Monetary Fund (IMF), the government is also set to update property valuation tables in 42 cities by September 2024, enabling the Federal Board of Revenue (FBR) to issue revised property rates soon.
While the FBR has opposed a general GST increase from 18% to 19%, items that currently benefit from lower tax rates, like tractors, could face higher GST soon. Additionally, the government is mulling over a higher withholding tax for property transactions.
