The International Monetary Fund (IMF) has demanded ‘do more’ from Pakistan over tax recovery.
International lender has demanded more recovery of income tax from retailers and real estate sectors, while increasing income tax recovery on agriculture income, sources said.
IMF has urged federal government and provinces to take joint efforts for taxes recovery. “A fixed tax on retailers can be imposed after December in case of shortfall in tax collection,” sources said.
The FBR has been empowered to introduce a scheme for imposition of tax on retailers. The IMF has also demanded consultation with provinces for imposing tax on agriculture and real estate sectors.
The IMF mission has also extended proposals to the FBR for amendments in tax policy and addressing flaws in taxation.
The monetary fund has suggested an effective taxation policy and enforcement in sectors with lesser tax recovery, sources said.
The FBR has provided the revenue projection report till the end of current fiscal year to the IMF team. The IMF mission will respond over the revenue projection report till Saturday, sources at the FBR said.
The Federal Board of Revenue (FBR) has also briefed the IMF about the task force on the tax policy and tax administration.
Pakistan has agreed with the IMF to share the data of the tax evaders with the help of FBR, banks and NADRA, to improve tax collection.
The agreement was reportedly reached during policy review talks between the IMF officials and Pakistan to release a $700 million loan tranche under the Standby Agreement (SBA).