KARACHI: The International Monetary Fund (IMF) has urged the Federal Board of Revenue (FBR) to implement significant tax reforms, targeting an increase in revenue from the salaried and non-salaried classes.
The IMF’s proposal includes reducing the number of tax slabs from seven to four and removing tax exemptions on employer contributions to pension funds. This move aims to bridge the disparity between different income groups and simplify the tax system.
According to the IMF, these changes could boost the country’s revenue by an additional 0.5 percent of GDP, equivalent to Rs500 billion annually.
Currently, the FBR has collected Rs215 billion from the salaried class in the first eight months of the fiscal year. With the proposed reforms, this figure is expected to increase significantly, alongside additional gains from eliminating tax exemptions and preferential treatments.
The IMF believes these adjustments will lead to a fairer and more efficient tax framework, supporting economic stability and growth.
