ISLAMABAD: Federal Board of Revenue (FBR) has devised an alternate plan to meet the tax shortfall without introducing a mini-budget, according to FBR sources.
As per details, Federal Board of Revenue (FBR) Chairman Rashid Langrial has developed an alternative strategy to address the tax shortfall, as Prime Minister Shehbaz Sharif has rejected a proposal to further increase taxes on the salaried class.
FBR chief is likely to hold key negotiations to discuss measures to boost tax revenues.
The talks will cover FBR’s Transformation Plan, Track and Trace system, and Retailers’ Scheme. Under the Transformation Plan, FBR aims to modernize its framework to align with international standards, the sources said, adding, the Retailers’ Scheme will allow data sharing of registered traders with the IMF.
Sources indicate that from July to October, FBR was expected to collect PKR 17 billion in taxes from traders but fell short of the target.
The Track and Trace system is set for installation review across five sectors, with an evaluation to extend this system to the tile sector as well.
Proposed changes include raising the FBR fee on POS receipts by Rs1. Furthermore, discussions with the IMF will consider special audits for retailers who do not implement POS systems. FBR will brief the mission on its enforcement plan to bridge the revenue shortfall.
International Monetary Fund (IMF) delegation is in Pakistan for loan talks.
According to sources within the Ministry of Finance, the IMF team will review Pakistan’s economic performance and hold talks with relevant ministries.
