ISLAMABAD- A team from the International Monetary Fund (IMF) arrived in Pakistan on Monday to engage in discussions on tax reforms and the augmentation of tax revenue, the sources privy to the development said on Monday.
The sources said that the primary focus of these discussions would revolve around proposing measures to the FBR for amendments in the tax policy, with an emphasis on expanding the tax net and maximizing tax collection.
The technical experts’ delegation, they said, is scheduled to conduct consultations with the Federal Board of Revenue (FBR) over the course of approximately one week.
“How to expand tax net is the main focus of the meeting,” said the sources, seeking anonymity.
The sources said that the IMF technical team and the FBR will work together to prepare amendments in the tax policy, with the changes expected to be implemented in the upcoming budget. Importantly, it has been clarified that the discussions on the tax net will not impede the transfer of the loan tranche.
The collaborative efforts between the FBR and IMF experts aim to formulate the basic structure for implementing a scheme targeting retailers. As a result, an anticipated one million additional taxpayers will be incorporated into the tax net, elevating the total number of taxpayers to six million.
In related developments, it has been reported that the IMF executive board is slated to approve the staff-level agreement with Pakistan on December 7.
Following this approval, approximately US$700 million is expected to be made available to Pakistan, contributing to a total disbursement of nearly US$1.9 billion under the program.
