Pakistan refuses to comply with IMF’s demand.
Islamabad: The International Monetary Fund (IMF) has demanded Dow Moore from Pakistan, to which Pakistan has refused to comply.
According to FBR sources, the FBR revenue target for the new financial year is estimated at Rs 5,700 billion, which the IMF has approved. In the new financial year, Rs 200 billion will be collected through policy measures. The target is to collect Rs 10 billion in revenue through individual taxation. The Finance Bill 2021 will eliminate sales tax exemptions and incentives.
According to sources, the IMF was pushing for a revenue target of Rs 5,963 billion. After three days of talks, Pakistan agreed to the IMF. As a result, the FBR revenue target for the current financial year has been set at Rs. 4691 billion. At the behest of the IMF, the FBR will have to collect 27.11% additional revenue in the new financial year.
Because of the Corona epidemic, it is impossible to achieve revenue of Rs. 5963 billion. If the tax target of Rs 5,700 billion is achieved, 21.5% additional revenue will have to be collected. The FBR will get 13.2% additional revenue from 5% GDP growth in the next financial year. In the next financial year, Rs 170 billion more tax will be collected from enforcement measures. Additional tax measures of Rs. 70 billion are included in the Tax Amendment Second Amendment Ordinance 2021 for the current financial year.
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