APBF President Syed Maaz Mahmood highlighted that the FBR collected Rs4.29 trillion in the first five months of the fiscal year (July-November 2024), achieving a 23% growth rate but still falling short of the Rs4.64 trillion target. To meet the annual target of nearly Rs13 trillion, a growth rate of 40% is required.
Mahmood pointed out that including agricultural income in the tax net, as recommended by the International Monetary Fund (IMF), could significantly enhance revenue. Without this inclusion, the tax burden would disproportionately fall on the industrial sector. However, legislative hurdles remain before this measure can be implemented effectively.
He also criticized the continued use of amnesty schemes, arguing that they discourage honest taxpayers. Instead, Mahmood proposed stricter penalties for tax evaders and laws allowing the government to seize undeclared local assets or impose taxes on foreign assets without verifiable income sources.
To support economic growth, Mahmood advocated facilitating export-oriented industries by simplifying regulations and procedures. He noted that despite abundant resources, Pakistan’s export growth remains sluggish, which is a concerning trend for economic stability.
Furthermore, he emphasized the need for investments in the energy sector, including the construction of dams and water reservoirs, and the utilization of Thar coal deposits. He also called for lowering tariffs on smuggling-prone items, increasing reliance on direct taxes, and reducing indirect tax slabs to achieve fiscal sustainability.
