Islamabad, Mar 4, 2025: The Federal Board of Revenue (FBR) is set to launch an intensified revenue collection initiative, targeting an additional Rs. 250 billion from retailers to bridge the existing revenue deficit.
The International Monetary Fund (IMF) has assessed the FBR’s administrative measures aimed at securing this revenue through the Compliance Risk Management (CRM) framework. This strategy is designed to incorporate a vast number of retailers into the tax system, addressing longstanding issues of tax evasion.
To meet revenue targets, the government is expanding its Compliance Improvement Plan (CIP) and rolling out the Tajir Doost Scheme in 36 additional cities. The FBR has also consolidated tax data from 145 institutions, introducing digital invoicing, track-and-trace systems.
Stricter enforcement protocols to enhance tax compliance. Additionally, authorities are revising regulatory frameworks to strengthen supply chain monitoring, ensuring a more robust taxation structure.
In a move to improve compliance, the FBR is deploying artificial intelligence-driven audit mechanisms, selecting 3 to 5 percent of the six million tax returns for in-depth examination. Independent auditors will also be appointed to enhance transparency and accountability.
Meanwhile, the IMF is set to assess Pakistan’s tax penalty framework, working toward the formulation of a General Anti-Avoidance Rule (GAAR) to prevent tax avoidance loopholes. Beyond taxation reforms, discussions between the IMF and the government will include an evaluation of Pakistan’s economic progress in the first half of FY 2024-25.
These talks will focus on potential macroeconomic adjustments to maintain financial stability and meet fiscal targets.This aggressive tax compliance push reflects the government’s commitment to increasing revenue, curbing tax evasion, and ensuring a more efficient taxation system, aligning with broader economic reform objectives.
