Chairman FBR rules out mini budget for Pakistanis

Pakistan government does not plan to introduce a mini budget, as the International Monetary Fund (IMF) expressed satisfaction with Pakistan’s tax revenue performance.

Speaking to the media after a Senate Standing Committee on Finance and Revenue meeting, Chairman Federal Board of Revenue (FBR) Rashid Langrial confirmed that discussions with the IMF are progressing well.

He highlighted that the tax-to-GDP ratio has improved from 8.8% to 10.3%, and the FBR's tax revenue target for the current fiscal year remains PKR 12,970 billion. Despite challenges, this target will not change.

Langrial also assured that the government will not impose General Sales Tax (GST) on petroleum products.

He mentioned that Pakistan will start collecting taxes on agricultural income next year, broadening the tax base.

The FBR has collected PKR 12 billion from retailers in three months, with the number of registered traders rising from 200,000 to 600,000. Around 0.4 million traders are now filing tax returns.

Regarding the PKR 189 billion shortfall, Langrial said the IMF is satisfied with the FBR's performance and expects economic activities to boost revenue collection in the coming months.

Langrial confirmed a new policy to penalize businesses issuing fake POS receipts, with fines and shop closures for violators.

He acknowledged enforcement weaknesses and assured that measures would be strengthened soon.

Earlier, the Senate Finance Committee, chaired by Senator Saleem Mandviwala, discussed a 10% levy on transport and businesses across Pakistan and Iran.

The committee decided to refer the issue to the Communications Committee for further deliberation.