The Federal Board of Revenue (FBR), in collaboration with provinces, has taken several key steps to improve tax collection through the “Pakistan Raises Revenues” initiative. Here’s a breakdown of the changes:
Revised Property Valuation:
- Agreements reached with all provinces to standardize immovable property valuation.
- New valuation tables implemented from July 1, 2024, leading to potentially higher tax revenue from property transactions.
World Bank Loan Adjustments:
- Disbursement of a $400 million loan from the World Bank linked to achieving specific tax collection targets.
- Revised goals include raising the tax-to-GDP ratio from 8.5% to 8.8% by FY25.
- Implementing digital data-sharing across provinces for a unified taxpayer database.
- Expanding the evaluation period for “Pakistan Raises Revenues” project to June 2025.
- Focusing on faster customs clearance by measuring goods declaration processing within 48 hours.
Improved GST Efficiency:
- Agreements between FBR and provinces on input adjustments and digital data-sharing to ensure accurate GST collection.
- Harmonization of GST and GST on Services (GSTS) for smoother taxation.
- FBR to prepare MoUs on GST input adjustments with provincial endorsement.
- Both internal and World Bank reviews of agreements to ensure compliance and effectiveness.
Overall Impact:
These measures aim to enhance tax collection efficiency, leading to more government revenue and potentially impacting property transactions and GST regulations across Pakistan.
