*ISLAMABAD: *The International Monetary Fund (IMF) has projected that therevenues of the Federal Board of Revenue (FBR) would increase to Rs10.5trillion by the year 2023-24.
In its recently published staff report on Pakistan, the IMF projected thatthe FBR is likely to collect around Rs5.5 trillion during the currentfiscal year, which would increase to Rs7.001 trillion in next year, whilein 2021-2022, the revenues would reach to Rs8.3 trillion, and Rs9.48billion in the subsequent year.
As per the IMF, the overall revenues of the country will most likely surgeto 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 Rs13.37billion in 2023-24.
The report said that the rapid growth of tax revenues in the coming yearswould be ensured by the policy measures committed by the Pakistaniauthorities.
“With less than 1.5 million taxpayers filing tax returns and tax compliancegenerally very low, tax policy and tax administration measures will centreon broadening the tax base while maintaining a low tax rate, aiming toensure the progress of the taxation system,” it added.
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The IMF stated that additional 4-5 percentage points of GDP in additionaltax revenues could be achieved by the end of the programme, bringingPakistan’s tax ratio in line with peer emerging markets.
“In the near term, measures include removing exemptions and preferentialtreatment to reduce distortions in the tax system and to broaden the taxbase. These include the removal of GST exemptions and preferential rates,except for basic food and medicines, a measure that will significantlyimprove revenues,” the report added.
