IMF Urges Pakistan to Boost Tax Revenue Through Expanding Taxpayer Base
In ongoing technical-level negotiations, the International Monetary Fund (IMF) has urged Pakistan to furnish a comprehensive report on potential tax collection across various sectors. This call for action was made during discussions between the two parties. To ensure a successful outcome, the Federal Board of Revenue (FBR) has pledged its commitment to achieving the ambitious tax collection target of Rs9,415 billion for the current fiscal year.
Karobar
As part of their requirements, the IMF has also requested a status update on pending tax cases, a matter that was discussed with the FBR on Monday. Notably, Pakistan has managed to amass a total of Rs2,748 billion in tax revenue during the first four months of the ongoing fiscal year. The IMF has set forth a goal for the collection of the remaining Rs6,670 billion by June 2024, a challenge that FBR officials are confident they can meet without any shortfall.
In a proactive step, Pakistan has shared information about one million newly added taxpayers with the IMF, an effort aimed at expanding the tax net. The discussions between the two parties have also delved into the proposed plan to nearly double the number of taxpayers from the existing 4.9 million to a substantial 10 million. Collaborative consultations with international financial bodies, including the IMF and the World Bank, are likely to be on the horizon, focusing on strategies to broaden the tax base.
The IMF's primary directive is to increase tax revenue by expanding the number of taxpayers, a measure that aligns with Pakistan's economic objectives and its commitment to meeting international financial standards.
