FBR to Recover Rs. 250 Billion from Retailers to Mitigate Tax Shortfall
Federal Board of Revenue (FBR) has unveiled a new initiative to recover an additional Rs. 250 billion from retailers to overcome Pakistan’s revenue deficit.
The International Monetary Fund (IMF) has discussed FBR’s attempts to raise the amount of Rs. 250 billion using its Compliance Risk Management (CRM) system. This involves attempting to bring millions of retailers within the tax base.
The strategy of the government is to increase the CRM framework, enhance the Compliance Improvement Plan (CIP), and implement the Tajir Doost Scheme in 36 additional cities. The FBR is also consolidating tax information from 145 agencies and introducing digital invoicing, track-and-trace systems, and enhanced enforcement to curb tax evasion.
To enhance compliance, FBR is launching AI-based audits and choosing 3-5 percent of the six million tax returns submitted for checking. They are also recruiting independent auditors to help in the process. The IMF will check the tax penalty system of the country to devise a General Anti-Avoidance Rule (GAAR) to fight tax evasion.
In addition, the IMF and government will also go through Pakistan’s first-half economic performance in FY 2024-25 and talk about requisite macroeconomic reforms.
