By The International Monetary Fund (IMF) has asked Pakistan to make up its tax revenue shortfall and has proposed emergency tax measures if collection targets continue to be missed.
Sources said the lender has flagged a shortfall of Rs129 billion in October, taking the gap to Rs96 billion for the first four months of the fiscal year. It has called on the government to achieve the annual collection target of Rs15,264 billion and to raise the tax-to-GDP ratio, describing current revenues as inadequate.
Officials at the Federal Board of Revenue (FBR) said that a further widening of the shortfall could force the government to choose between imposing new taxes and reducing public spending. Revenue-related conditions are expected to become stricter in the coming economic reviews, with emergency measures to be taken up if targets are missed.
The IMF has also asked for higher General Sales Tax collection at both federal and provincial levels. It may tighten revenue conditions for the next fiscal year and has suggested that progress be shown in tax collection from the retail, wholesale and agriculture sectors before the new budget is presented.
In addition, the Fund has urged the government to bring all sectors outside the tax net, including professionals, into the system. Sources added that compliance with the conditions of the $7 billion loan programme is mandatory.
Meanwhile, minister of state for finance Bilal Azhar Kiani told the National Assembly Standing Committee on Finance that the government would take legal action and impose fines on shopkeepers who have not registered under the Easy Tax Scheme, as registrations remain below expectations.
Azhar Kiani said the enforcement mechanism would be presented within a few days. Committee Chairman Naveed Qamar questioned the scheme’s progress, saying the government had expected 80 percent of shopkeepers to register.
The committee also deferred the Companies Amendment Bill after Qamar raised concerns over the misuse of the Export Facilitation Scheme and the absence of the FBR chairman for a briefing.
https://www.techjuice.pk/no-more-exemptions-imf-wants-retail-agriculture-and-professionals-taxed/
