Govt likely to raise taxes on various sectors amid revenue shortfall risks

May 10, 2024 (MLN): There are risks of shortfalls in tax revenue in April and May 2024 due to holidays that will see port closures and weigh on revenue collection, policy discussions from the second and final International Monetary Fund (IMF) review report show.

The government has agreed on contingency revenue measures with the IMF if revenue falls short of target.

"Agreed contingency measures will be adopted should collections fall short," it said.

Additional efforts are also needed to meet the SBA’s revenue administration goals.

Efforts to collect additional revenue from retailers have been delayed, and challenges continue in the tobacco sector where, despite the mandatory implementation of track-and-trace systems, smuggling and clandestine production continue despite efforts to curtail informal production and imports.

The FBR is expanding its track-and-trace system to additional commodities such as sugar, fertilizer, and cement to tighten control over informal markets in these sectors.

The FBR has, however, successfully registered 1.1 million new filers, from which 170,999 new returns have been obtained through enforcement measures, with the remainder coming voluntarily.

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