Amid concerns over revenue shortfalls and the impending IMF bailout package vote, the Federal Board of Revenue (FBR) chief is exploring strategies to avoid burdening the public with new taxes. Instead, he suggests focusing on auditing wealthy taxpayers and restricting non-filers from land transactions to curb money whitening.
With tax collection decreasing and political instability looming, the government faces the challenge of meeting fiscal deficit targets. The FBR chairman’s proposal aims to bring high-net-worth individuals into the tax net and ensure tax compliance. While he is hopeful of staying within IMF limits without new tax measures, some analysts believe additional revenue measures may still be necessary.
The government considers alternatives such as higher petroleum development levy and reduced non-essential spending to address revenue shortfalls. The real test lies in bringing retail shops into the tax net, with trust deficit hindering compliance. The government’s ability to overcome this challenge remains uncertain.
Published in Dawn, September 14th, 2024