FBR’s Tax Shortfall Sparks Mini-Budget
According to sources, the FBR’s failure to meet its tax targets has resulted in a major shortfall, that may lead to difficulties in the second installment of the loan.
Sources revealed that the IMF has also expressed its concerns over the FBR’s inability to meet its tax targets, whereas the mini-budget is seen as a necessary step to address the revenue shortfall.
The government is expected to introduce a mini-budget worth around PKR 500 billion to address the revenue shortfall, sources added.
The FBR’s failure to meet its tax targets has also led to a shake-up in the organization, with several high-ranking officials being replaced.
On the other hand, the Federal Board of Revenue (FBR) ruled out an extension of the deadline for filing income tax returns.
After two extensions, the FBR denied any further extension in the deadline, which expired on (October 31).
According to the FBR officials, so far, over 5.01 million returns have been submitted, with more than Rs125 billion collected from the tax returns process.
Officials emphasized that individuals earning Rs50,000 per month are required to submit income tax returns. Those failing to do so will be classified as non-filers or late filers.
FBR expedites action against tax evader companies, individuals
Non-filers will face restrictions on international travel, their mobile phone SIM cards will be blocked, and their electricity and gas services may be disconnected, the body officials said.
On September 27, Pakistan received the first tranche of the International Monetary Fund’s (IMF) following the approval of the IMF Executive Board of a 37-month Extended Fund Facility amounting to US$7 billion.
State Bank of Pakistan (SBP) received SDR 760 million –equivalent to USD 1026.9 million– as the first tranche from the IMF on Friday, according to SBP.
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