FBR assures IMF: Rs12.9trn revenue target will stay intact

ISLAMABAD: The Federal Board of Revenue (FBR) has assured the International Monetary Fund (IMF) that the revenue collection target of Rs12.9 trillion for 2024-25 would remain intact.

Sources, well aware of developments, told a group of reporters here on Wednesday that the tax collection target of the FBR would not be revised downward for the current fiscal year.

According to the sources, there is no chance of mini-budget or additional taxation measures in coming days. Responding to queries, the sources said that sales tax would not be imposed on petroleum products.

To a query, sources said that the collection from the agriculture income tax would be started from next year across the country. Sources claimed that the tax-to-GDP ratio has been raised from 8.8 percent to 10.3 percent as a result in policy and enforcement measures. The IMF has expressed satisfaction over increase in the tax-to-GDP ratio.

FBR tells IMF: No need for contingency revenue measures

They said that the economic activities would be improved in December keeping in view stable exchange rate and lower policy rate, which would help in overcoming revenue shortfall in second quarter of 2024-25.

The sources said that the draft Tax Laws Amendment Ordinance 2024 has been presented to the prime minister for approval. The ordinance contains a new family income tax return with the abolition of concepts of non-filers and late filers.

The FBR has not proposed any increase in tax rates or new taxation through the new Ordinance. It is only related to the enforcement measures.

Sources said that the proposed changes in the Tajir Dost Scheme would be discussed with the IMF during the ongoing meetings.

The FBR has informed the IMF that the FBR has collected Rs12 billion tax from retailers during the first quarter (July-September) of 2024-25. Only 0.5 million potential retailers are the target of the FBR instead of three million small shopkeepers.

The Tajir Dost Scheme is only one component of registration of retailers. “Tajir Dost Scheme is not the objective of the IMF program. The objective is to bring retailers into the tax net. Tajir Dost Scheme is only an instrument like tax collected under sections 236G and 236K of the Income Tax Ordinance 2001,” sources clarified.

The Tajir Dost Scheme is not the ultimate objective of the government, but the ultimate goal is to register all potential/big retailers across the country.

Copyright Business Recorder, 2024