The International Monetary Fund (IMF) has received assurances from the Federal Board of tax (FBR) that the Rs12.9 trillion tax collection goal for 2024–2025 would not be altered.
A group of journalists here on Wednesday were informed by sources, who are fully aware of the happenings, that the FBR’s tax collection target would not be lowered for the current fiscal year.
The sources state that there is no possibility of a mini-budget or other taxing measures in the near future. In response to questions, the sources stated that petroleum items would not be subject to sales tax.
In response to a question, sources stated that nationwide farm income tax collection will begin the next year. According to the sources, policy and enforcement actions have caused the tax-to-GDP ratio to increase from 8.8% to 10.3%. The improvement in the tax-to-GDP ratio has pleased the IMF.
They stated that in order to overcome the revenue gap in the second quarter of 2024–2025, economic activity will recover in December with a stable exchange rate and a reduced policy rate.
According to the reports, the prime minister has been asked to approve the draft Tax Laws Amendment Ordinance 2024. The ordinance eliminates the notions of late filers and non-filers and introduces a new family income tax return.
The FBR has not suggested any additional taxes or increases in tax rates. It solely has to do with the enforcement actions.
As per certain reports, during the current sessions, the IMF will be briefed on the suggested modifications to the Tajir Dost Scheme.
The FBR told the IMF that during the first quarter of 2024–2025 (July–September), it collected Rs12 billion in taxes from merchants. The FBR targets three million small merchants, but just 0.5 million prospective retailers.
