Pakistan has fulfilled one of the main conditions of the International Monetary Fund (IMF) for the last loan tranche of $1.2 billion by collecting more than Rs4.44 trillion in taxes during the first half of 2023-24 fiscal year.
The tax authorities have also decided to start disconnecting the utility and mobile phone connections of non-filers of income tax returns from next month, aiming to enhance the tax base to more than six million individuals in this fiscal year.
The IMF had set the Rs4.425 trillion indicative tax collection target for the July-December period of this fiscal year. It is among one and a half dozen conditions that Pakistan must meet to qualify for the last loan tranche of $1.2 billion, to be negotiated in February or March.
Until the last working day of the month, the Federal Board of Revenue (FBR) has so far collected Rs4.440 trillion, showing an increase of Rs1.15 trillion or 35% over the collection made during the same period of the previous fiscal year. The FBR offices and banks will also remain open on the weekend, and the tax authorities hope to collect another Rs50 billion in the next two days.
According to an understanding reached with the IMF, the FBR will monthly inform the global lender about progress in its revenue collection. In case of a revenue shortfall in any month, the FBR will trigger back-up measures that include the imposition of excise duties and withdrawing sales tax exemptions.
The FBR’s management has so far performed exceptionally well, and the expectations are that the tax machinery will achieve the Rs9.415 trillion annual target despite a slump in imports.
Certainly, it is good news for Pakistan that the conditions set by the international lender have been mainly met by Islamabad, and like requesting SBA from IMF after end of the PTI government, which violated the conditions agreed, Pakistan will now not have to take more tough decisions.
On the other hand, SBP governor also said that the inflation will be brought between 20 to 22pc in FY2023-24. These are the two good news for Pakistanis for the upcoming new year.
Inflation is certainly a main problem for the people of Pakistan and the assurances from the authorities with practical steps are certainly creating hopes for the people for a good and prosperous 2024.
