IMF mission: With the intention of expanding Pakistan’s tax system, the International Monetary Fund (IMF) has dispatched a group of technical experts to Islamabad.
During the course of the week-long consultations, the Federal Board of Revenue (FBR) members have stated that the IMF team will provide advice on enhancing tax efficiency.
The Fund insists on raising the tax-to-GDP ratio to 15%. Furthermore, the IMF has mandated that the rich pay taxes.
There will most likely be a discussion during the consultations about how to include merchants in the tax net. The global lender will supply the policy parameters for the proposed system.
By adding one to 1.5 million new members, the overall number of taxpayers on the rolls is intended to reach 6.5 million by June 2024.
The officials added that, in order to widen the tax net, technology and data from other sources will be used.
As previously reported, the negotiations will present any modifications to the tax policy that the upcoming budget will include.
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About a week ago, sources said that negotiations to improve the tax policy and its implementation would continue for an additional week after the IMF technical group visited Pakistan the following week.
They also mentioned that the panel will discuss policies with the FBR and look into measures to increase tax revenue.
During the discussions, the committee will also consider suggestions to modify the tax code. The sources claim that the modifications aim to increase revenue and expand the tax net.
Additionally, the sources indicate that the retailing plan’s foundational architecture will be constructed.
The intention is to increase the number of taxpayers from one million to six million. The sources state that the proposed changes to tax law will become effective with the next budget.
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