https://arab.news/grxmz
- Sharif chairs important meeting on reforms in Pakistan’s tax agency, Federal Board of Revenue
- Pakistani PM says FBR reforms to enhance country’s revenue, says tax refund system will be improved
ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday tasked the Federal Board of Revenue (FBR) to increase its revenues by speeding up reforms, bringing “wealthy” people into the tax net and avoiding putting additional burden on the poor, as Islamabad seeks to enhance its revenues and avoid putting pressure on the poor.
Pakistan last month passed a tax-heavy budget with an ambitious tax revenue target of 13 trillion rupees ($47 billion) for fiscal year 2025, a near 40 percent jump from the last fiscal year. The budget was instrumental in convincing the International Monetary Fund (IMF) to enter into a $7 billion loan program with Pakistan.
Pakistan’s opposition parties and government allies have criticized the tax-heavy budget, accusing authorities of overburdening the poor with taxes. PM Sharif’s government has vowed to carry out gradual fiscal consolidation, broaden Pakistan’s existing tax base and improve tax administration and debt sustainability while protecting the vulnerable.
The Pakistani prime minister chaired a meeting related to the FBR’s reforms and digitization in Islamabad on Thursday where he was informed that 4.9 million people who can afford taxes have been identified through modern technology.
“The prime minister instructed to bring the wealthy and well-off people among these 4.9 million individuals to the tax net on a preferential basis and no additional burden should be put on the poor,” state broadcaster Radio Pakistan said.
During the meeting, the Pakistani prime minister noted that the FBR had unearthed a fraud of Rs800 billion in tax refunds during the last four months, saying it reflected “positive results” by the authority.
Sharif said the country’s tax refund system will be further improved, adding that reforms in the FBR can enhance the country’s revenue.
“The Prime Minister said that the unnecessary delay in implementing several projects regarding the reforms in FBR is regrettable,” Radio Pakistan said.
Sharif was told that the FBR’s trader-friendly mobile application has registered 150,000 retailers since April 1, 2024. He urged authorities to continue consultations with retailers to make this system more effective.