Pakistan, IMF talks: FBR to ‘seek’ Rs100bn relief in tax target
ISLAMABAD ( Web News )
Preparations have intensified for upcoming negotiations between Pakistan and the International Monetary Fund (IMF), with the Federal Board of Revenue (FBR) aiming to secure a reduction of Rs50–100 billion in its annual tax target, citing sources.
On the directives of Prime Minister Shehbaz Sharif, the FBR has accelerated its preparations for the talks, the sources said and added that PM Sharif has instructed that no new taxes be imposed until 30 June and directed the FBR to meet its revenue target without introducing fresh levies or presenting a mini-budget.
Sources said discussions with the IMF will focus on tax data from July to January, with revenue performance to be reviewed in light of inflation and economic growth trends.
Efforts will be made to revise the annual tax target downward from Rs13,979 billion to Rs13,879 billion. The IMF will also be briefed on additional revenue generated through the super tax decision.
Between July and January, the FBR collected Rs7,147 billion against a target of Rs7,521 billion, resulting in a revenue shortfall of Rs372 billion during the period.
A special session with the IMF will examine tax collection in relation to inflation and GDP growth. Sources added that super tax collections are expected to reach Rs217 billion during the current fiscal year.
Officials are hopeful that increased consumer spending ahead of Eid will boost sales tax revenues in the coming weeks.