No mini budget after IMF expresses satisfaction with tax measures

The Federal Board of Revenue (FBR) has announced that its revenue collection target for the current fiscal year remains fixed at Rs12.97 trillion, as per ongoing discussions with the International Monetary Fund (IMF).

Officials confirmed that no additional taxes or mini-budget will be introduced, as the IMF has responded positively to Pakistan’s recent tax reforms.

Authorities expect economic activity to accelerate by December, supported by a stable exchange rate and a reduced State Bank policy rate.

This is anticipated to address the Rs190 billion tax shortfall observed between July and October. The tax-to-GDP ratio has improved from 8.8% to 10.3%, meeting the IMF’s expectations.

Meanwhile, the FBR assured that petroleum products would not see a general sales tax (GST) or increased petroleum levies.

Starting next fiscal year, taxes on agricultural income will be introduced, and the Tax Laws Amendment Ordinance 2024, featuring a family income tax return system, awaits the prime minister’s approval.

Lastly, FBR officials shared their commitment to enforce stricter penalties on businesses issuing fake point-of-sale (POS) receipts, aiming to strengthen revenue collection.