Mohsin Siddiqui (Chief Reporter)

The Federal Board of Revenue (FBR) disclosed that over the course of a week, the IMF delegation will provide crucial assistance aimed at enhancing tax efficiency in the country.

The IMF has initiated efforts to elevate the tax-to-GDP ratio to 15 percent, emphasizing the inclusion of the elite class in the tax net. The ongoing consultations also focus on bringing retailers into the tax net, with the IMF set to furnish policy guidelines for the proposed scheme.

The overarching goal is to incorporate 1-1.5 million individuals into the tax net by June 2024, ultimately reaching a total of 6.5 million taxpayers by that time. To achieve this, third-party data and technology will be leveraged to expand the tax net, as confirmed by officials.

Notably, any proposed amendments resulting from these discussions are anticipated to be implemented in the new budget cycle. Sources indicate that negotiations to refine the tax policy and enhance its implementation will persist for a week following the arrival of the IMF technical delegation in Pakistan.

During this period, the delegation will scrutinize measures to augment tax revenue and engage in policy discussions with the FBR. The collaboration between the IMF experts and the FBR signifies a concerted effort to fortify Pakistan’s fiscal landscape and foster sustainable economic growth.