ISLAMABAD: The Federal Board of Revenue (FBR) has introduced a new initiative aimed at recovering an additional Rs250 billion from retailers to address Pakistan’s revenue shortfall.
The International Monetary Fund (IMF) has reviewed FBR’s efforts to raise this Rs250 billion through its Compliance Risk Management (CRM) system, which focuses on bringing millions of retailers into the tax net.
The government’s strategy includes expanding the CRM framework, strengthening the Compliance Improvement Plan (CIP), and rolling out the Tajir Doost Scheme in 36 more cities. The FBR is also working to consolidate tax data from 145 agencies, and is introducing digital invoicing, track-and-trace systems, and stronger enforcement measures to combat tax evasion.
To improve compliance, FBR is launching AI-based audits and will scrutinize 3-5 percent of the six million tax returns filed. Independent auditors are being recruited to assist in the process. Additionally, the IMF will review the country’s tax penalty system and propose a General Anti-Avoidance Rule (GAAR) to combat tax evasion.
Furthermore, the IMF and the government will assess Pakistan’s economic performance for the first half of FY 2024-25 and discuss necessary macroeconomic reforms.
