| Islamabad: The Federal Board of Revenue (FBR) has confirmed to the International Monetary Fund (IMF) that its revenue collection target of PKR 12.9 trillion for the fiscal year 2024-25 will remain unchanged. The report stems from a piece released on November 14.
Read: Five major proposals approved in ‘FBR Transformation Plan’
Informed sources indicated that there are no plans to introduce a mini-budget or additional tax in the near future, and the current sales tax on petroleum products will not be revised. The FBR also reported that tax collection from the agriculture sector is planned to begin next year.
The IMF has acknowledged an increase in Pakistan’s tax-to-GDP ratio from 8.8% to 10.3%, attributing it to recent policy and enforcement adjustments. Economic activity is anticipated to strengthen by December due to a stable exchange rate and lower interest rates, which may help address revenue shortfalls in the fiscal year’s second quarter.
A draft of the Tax Laws Amendment Ordinance 2024 has been presented to Prime Minister Shahbaz Sharif. This ordinance proposes a new family income tax return and removes the distinction between non-filers and late filers. It aims at enforcement rather than tax rate increases or new taxes. Discussions with the IMF are underway on potential modifications to the Tajir Dost Scheme, which targets the registration of large retailers.
Read: FBR reports 76% increase in tax filings for 2024, surpassing 5 mn mark
The FBR reported collecting PKR 12 billion in tax from retailers in the first quarter of 2024-25, focusing on half a million key retailers rather than the broader pool of smaller shopkeepers. The scheme is one of several tools intended to expand the tax net across the retail sector. |
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