FBR revenue would increase to unprecedented Rs 10.5 trillion by end of PTI tenure: IMF
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*ISLAMABAD: *The International Monetary Fund (IMF) has projected that the revenues of the Federal Board of Revenue (FBR) would increase to Rs10.5 trillion by the year 2023-24.
In its recently published staff report on Pakistan, the IMF projected that the FBR is likely to collect around Rs5.5 trillion during the current fiscal year, which would increase to Rs7.001 trillion in next year, while in 2021-2022, the revenues would reach to Rs8.3 trillion, and Rs9.48 billion in the subsequent year.
As per the IMF, the overall revenues of the country will most likely surge to Rs7.165 trillion in 2019-20, followed by Rs8.9 trillion in 2020-21, Rs10.6 trillion in 2021-22, Rs12.12 trillion in 2022-23, and Rs13.37 billion in 2023-24.
The report said that the rapid growth of tax revenues in the coming years would be ensured by the policy measures committed by the Pakistani authorities.
“With less than 1.5 million taxpayers filing tax returns and tax compliance generally very low, tax policy and tax administration measures will centre on broadening the tax base while maintaining a low tax rate, aiming to ensure the progress of the taxation system,” it added.
The IMF stated that additional 4-5 percentage points of GDP in additional tax revenues could be achieved by the end of the programme, bringing Pakistan’s tax ratio in line with peer emerging markets.
“In the near term, measures include removing exemptions and preferential treatment to reduce distortions in the tax system and to broaden the tax base. These include the removal of GST exemptions and preferential rates, except for basic food and medicines, a measure that will significantly improve revenues,” the report added.
