In line with the IMF agreement, the Federal Board of Revenue (FBR) has lowered its annual tax collection target from Rs12,970 billion to Rs12,913 billion for the fiscal year 2024-25.
Top sources confirmed to The News on Thursday that the IMF and FBR have set monthly and quarterly targets to achieve the revised goal of Rs12,913 billion from July 2024 to June 2025. The FBR aims to collect Rs2,642 billion in the first quarter (July-September), with targets of Rs656 billion for July, Rs898 billion for August, and Rs1,098 billion for September.
The IMF agreed to this revision after the FBR rationalized its expenditures. Despite the target reduction, the overall fiscal deficit and primary surplus remain unchanged.
For the last fiscal year ending June 30, 2024, the FBR collected Rs9,311 billion, surpassing the revised target of Rs9,252 billion. The IMF has emphasized that if the agreed quarterly targets are not met, additional revenue measures will be required.
Following the budget approval for 2024-25, the FBR introduced the Tajir Dost Special Procedure, 2024, with fixed tax rates ranging from Rs100 to Rs60,000 per month based on shop valuations in 42 cities. In some areas, the fixed tax is Rs60,000 per month, while in others, it is as low as Rs100. The FBR expects to collect Rs50 billion from retailers this year and has planned a media campaign to encourage traders to integrate online for the Tajir Dost Scheme.
Regarding tax notices to about 5 million potential tax-dodgers identified by McKinsey, the FBR has already issued notices to non-filers. Some notices may be duplicates for those who have already been contacted in previous months.
Questions sent to both the IMF and FBR for further comment had not been answered by the time of this report.
