Pakistan has committed to the International Monetary Fund (IMF) to sustainably raise additional revenue by targeting undertaxed sectors like agriculture and construction, broadening the tax base, and improve progressivity.
In the Letter of Intent (LOI) submitted to the IMF, the government has reiterated its commitment not to launch any new tax amnesties or grant further any new tax exemptions in 2023-24 including through the budget or Statutory Regulatory Orders without prior National Assembly approval.
According to the IMF report released on Tuesday, the IMF has projected Rs. 9,415 billion as the revenue collection target of the Federal Board of Revenue (FBR) for 2023-24. Out of this, direct taxes have been estimated at Rs 3,884 billion; sales tax at Rs. 3,607 billion; customs duty at Rs. 1,324 billion and the target of federal excise duty has been projected at Rs. 600 billion.
IMF said “Passed by the National Assembly on June 25, 2023 and signed into law by the president on June 26, 2023, our FY24 budget advances fiscal consolidation through a primary surplus of Rs. 401 billion (0.4 percent of GDP)—built on a set of credible measures that help:
Editorial & Legal Practice Group
Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.
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