ISLAMABAD: The Federal Board of Revenue (FBR) has denied rumors of introducing a mini budget this fiscal year.
Hamid Ateeq Sarwar, FBR Member Inland Revenue (IR) Policy, confirmed there was no need for a mini budget starting from October 1. He assured that the FBR aims to collect Rs 2,600-2,700 billion in taxes from July to September.
During an informal talk with journalists, Sarwar explained that this target would be achieved through several measures. These include sales tax recovery from gas companies and advance income tax collections from the corporate sector and banks. Additionally, around Rs 50 billion is expected to be collected from income tax returns.
Furthermore, Sarwar mentioned that the FBR, following Prime Minister Shehbaz Sharif’s directive, will focus on preventing tax evasion in certain sectors. This would strengthen the government’s revenue collection and improve overall compliance.
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Previously, there were reports that the FBR might consider introducing a mini budget. These reports surfaced due to concerns about the FBR’s difficulties in meeting its tax collection targets. Sources stated that the FBR must collect Rs 2,654 billion in taxes for the first quarter of the 2024-25 fiscal year, with Rs 1,190 billion needed in September alone.
According to these sources, failing to meet this target could lead to pressure from the International Monetary Fund (IMF) for a mini budget. The IMF may require this step to secure a $7 billion loan deal with Pakistan.
In response to these concerns, Sarwar emphasized that the FBR is working diligently to meet its tax collection targets. He noted that the government is also focusing on enhancing enforcement against tax defaulters and strengthening compliance within various sectors.
The FBR aims to achieve its fiscal goals without introducing a mini budget. However, Sarwar emphasized the need for ongoing efforts to meet all tax collection targets by the end of the quarter.
In conclusion, the FBR has taken significant steps to avoid introducing a mini budget. Through focused tax recovery efforts and increased enforcement, the government aims to meet its revenue goals and maintain fiscal stability.
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