To meet International Monetary Fund (IMF) requirements, the Federal Board of Revenue (FBR) has developed a comprehensive plan. Its aim is to raise tax revenue and formalize the economy.
The plan focuses on bringing around 3.5 million traders into the tax system through monthly electricity bills for tax collection. Instead of directly taxing shop owners, taxes will target individuals conducting business based on their income.
A new section will be added to electricity bills specifically for traders, simplifying monthly tax collection. Traders’ yearly income will be divided into 12 parts to streamline tax collection.
FBR officials propose implementing this before the new fiscal year budget announcement, pending approval from the new coalition government. The IMF has been briefed about the plan, with hopes that it will boost revenue and formalize the economy.
Overall, this initiative demonstrates FBR’s commitment to meeting IMF demands, increasing tax revenue, and formalizing Pakistan’s economy.
