ISLAMABAD: Amid Federal Bureau of Revenue’s (FBR) failure to meet tax targets, the government is considering mini-budget for implementing additional revenue measures, daily The News has reported.
The report added that an ordinance has also been drafted and is likely to be presented before the federal cabinet soon. It is expected that the ordinance may be promulgated within the ongoing month.
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Citing unidentified sources in the FBR, the report said that the proposed ordinance might implement stringent enforcement measures such as freezing bank accounts, and banning the purchase of plots, vehicles or other measures.
“The FBR may propose raising withholding tax rates on all imports, hike withholding tax rates on sale and purchase of properties and some other hikes in tax rates,” top official sources confirmed, the paper said.
Squeeze the development budget in the shape of the Public Sector Development Programme (PSDP) was also anticipated.
In the first quarter (July-September), utilisation was standing at just Rs22 billion, despite having a revised allocation of Rs1,100 billion for the whole financial year 2024-25, the paper said.
The FBR faced a revenue shortfall of Rs189 billion in the first four months (July-October) period of the current fiscal year and a shortfall in the first six months (July-December) period of the current fiscal year is feared.
The FBR has forcasted that there might be a shortfall of Rs321 billion in the first six months, leaving no other option but to consider a mini-budget, the report further said.
The government have to satisfy the IMF by cutting down the expenditure yet the ministry of finance is likely to oppose any such proposal, the report anticipates.
However, in a meeting held a few days ago under the minister of state for finance and secretary finance, the finance ministry bosses were upset and unhappy over the reduction in revenue and in case the tax shortfall widens, then the ministry of finance would be forced to curtail its unbridled expenditures.
“The Pakistani team will be walking on a very tight rope because if the revenue measures in the shape of hiking tax rates get a nod, it might further shrink the economy,” an official told the paper.
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The International Monetary Fund (IMF), although not confirmed, may send its mission to Islamabad anytime in the coming weeks with Pakistani authorities, who are saying that the lender’s team would visit the country next month (December 2024).
However, insiders insist that the IMF team might prefer to come anytime soon, the paper claimed.
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