ISLAMABAD – The government of Pakistan is taking stern measures to impose taxes and now a mini-budget is said to be on the cards as PML-N led alliance government is pushing to secure much-needed funds from the International Monetary Fund (IMF).
The South Asian nation is mulling to present a mini-budget amid to challenges faced by the Federal Board of Revenue (FBR) in meeting its tax collection targets. The apex tax collection authority needs to collect Rs2,654 billion in taxes for the first quarter of FY2024-25, with Rs1,190 billion required specifically in September 2024.
Reports in local media said FBR is falling short of its targets by the end of September, and global lender may insist on a mini-budget to secure $7 billion loan agreement. To address shortfall, the government is several other measures, including stricter enforcement against tax defaulters and potential revisions to the Finance Bill.
Furthermore, individuals who miss the September 30 deadline for filing income tax returns could face classification as late filers for up to two years, resulting in higher withholding taxes on income, vehicle taxes, and property-related transactions.
The proposed mini budget will also grant tax authorities increased powers to enforce compliance. IMF officials earlier raised concerns about the rising circular debt in power sector, with the government projecting an additional increase of Rs100 billion in debt for the current fiscal year.
IMF delays agenda for Pakistan’s $7 EFF approval until mid-September
