The International Monetary Fund (IMF) has rejected the government’s request for a downward revision in the revenue target of 5.5 trillion for the ongoing fiscal year, however, efforts will continue to convince them.
FBR Chairman Shabbar Zaidi said, “We are hopeful that IMF will consider our request”
The IMF delegation led by Herald Finger, arrived in Islamabad on November 7, on a two week-long visit for talks on a financial package on request of the Pakistani government to help in addressing its balance of payment issue.
The FBR tax collection base was eroded by Rs. 318 billion as tax target of Rs. 5.5 trillion was based on projection of Rs. 4,150 billion for the last fiscal year; however, the actual collection was Rs. 3,830 billion. There were also reports that FBR has asked the IMF for a downward revision of its tax collection target by Rs. 233 billion to bring it to Rs. 5,328 billion
Discussing details of the increase in the number of taxpayers in the current financial year, the committee was informed that an increase of 65.2 percent was observed compared to last year. The committee was also informed that out of 2,655,081 return filers, 888,748 new taxpayers have been added. The number of individuals that availed the Asset Declaration Ordinance 2019 was 124,208. Tax payment of Rs. 4.7 billion under the present scheme was also observed.
The Senate Standing Committee on Finance Revenue and Economic Affairs was informed that the Federal Board of Revenue (FBR) has collected Rs. 1,280 billion against a target of Rs. 1,447 billion in the current fiscal year (2019-2020) which is 16.3 percent higher than the previous year but fell short of the Rs. 1447 billion target.
The agenda presented before the committee included smuggling of LED TVs referred by Chairman Senate, briefing on details of non-performing loans and reasons for an increase since July 2018, steps are taken to get Pakistan out of the FATF grey list and details of tax collection 2019-20, increase in the number of taxpayers and sums of money recovered.
