ISLAMABAD – Budget 2025-26 is around the corner and all eyes are on expected decisions by the incumbent government, which is already making desperate efforts to boost Tax revenue.
In latest round of talks with International Monetary Fund (IMF), the Pakistani government is finalising new measures, cornering Non-Filers to a wall as huge chunk of people including some business owners, high-paid individuals and 0thers.
Under new proposals, those who fail to register themselves under tax net may face a lot of unwanted scenes, including purchase of vehicles and property.
This initiative comes as Pakistan continues negotiations with global lender to secure next tranche of its loan program, with Fund demanding robust reforms to enhance fiscal discipline and broaden country’s narrow tax base.
Under latest consideration, the government is planning to tighten terms of its facility, citing emerging global risks like increased tariffs from the US and escalating regional tensions. IMF further called for hike in electricity and gas tariffs and a phased withdrawal of tax concession.
With new changes, the government is ending non-filer designation from tax code. The government is also using information from outside sources like banks and businesses to find individuals or companies that may be dodging taxes to helps track down those evading taxes.
To support this effort, a new system called Compliance Risk Management System (CRMS) which will help the tax authorities identify and focus on people who are more likely to break tax laws. In recent times, the government also plans to expand this system to monitor large companies through their corporate tax departments, making the overall tax system more efficient and fair.
Officials of country’s apex tax collection authority also revealed that although the Tajir Dost Scheme did not achieve intended impact, there was 51percent surge in tax filers within trader and wholesaler segments after tweak in withholding tax on unregistered businesses.
Sources involved in budget talks confirm that government, under IMF advisement, decided to widen the tax base and enforce strict actions against those who fail to register and file taxes. These measures are expected to be officially announced in the federal budget for the upcoming fiscal year.
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