ByIslamabad, Pakistan – Pakistan is facing the prospect of introducing a mini-budget as the Federal Board of Revenue (FBR) struggles to meet its ambitious tax collection targets.
The FBR is required to collect Rs2,654 billion in taxes for the first quarter of the fiscal year 2024-25, with Rs 1,190 billion needed in September 2024 alone. Failure to achieve this target could jeopardize Pakistan’s negotiations with the International Monetary Fund (IMF) for a $7 billion loan.
The government is exploring various measures to boost tax collection, including stricter enforcement against tax defaulters and potential amendments to the Finance Bill. ARY News
Individuals who fail to submit their income tax returns by September 30 could face severe consequences, including being classified as late filers for up to two years. Late filers would be subject to higher withholding taxes on income, vehicle token taxes, and property-related transactions.
The proposed mini-budget could also grant tax authorities additional powers to crack down on non-compliance.
The IMF has expressed concerns about the increasing circular debt in Pakistan’s power sector, which further complicates the government’s economic challenges.
The introduction of a mini-budget would likely involve new taxes or tax increases, which could have a significant impact on the economy and consumer prices.
