ISLAMABAD – The federal government is considering imposing additional taxes on various sectors in the second half of the fiscal year to bridge the revenue shortfall being faced by the Federal Board of Revenue (FBR)
This move follows the government’s briefing to the International Monetary Fund (IMF) on a proposed emergency plan to meet fiscal targets.
As part of the ongoing $7 billion loan program with the IMF, new conditions have emerged for the release of the next tranche. According to officials from the Federal Board of Revenue (FBR), if the current tax target is not met, additional measures may be taken to collect an additional Rs200 billion. These measures could impact non-filers, solar panel users, and telephone consumers.
Proposed Taxes
Non-filers: A proposal to increase the tax on cash withdrawals from banks from 0.8% to 1.5% has been presented and it is expected to generate revenue of Rs30 billion.
Solar Panels: Increasing sales tax from 10% to 18%, aimed at generating additional revenue.
Landline Phones: The tax on landline phone bills could rise from 10% to 12.5%, with an estimated increase of Rs20 billion in revenue.
Mobile Calls: A proposal to raise the tax on mobile calls from 15% to 17.5%, which could bring in Rs24 billion.
Consumer Goods: Taxes on biscuits, sweets, and chips may rise to 16%, potentially generating an additional Rs70 billion in revenue.
The FBR faced a shortfall of 198 billion rupees in the first quarter of this year, and the government’s target for the fiscal year is set at 14.13 trillion rupees.
As an alternative, the government is also considering options to either increase the annual tax target or cut down on expenditures to balance the budget.
The success of these proposals and the potential revenue generation will be closely scrutinized by the IMF, as it forms a key condition for Pakistan to receive further financial assistance under the current loan agreement.
