Islamabad, Nov 8: The government will also introduce a new surcharge on fossil fuels to help it pull in more money, but the FBR has not mentioned when it will impose this surcharge.
According to FBR report 1 percent above increase required for attaining the 13.7 percent Tax-GDP ratio in 2028-29 would be levied through new surcharges on fossil fuels.
expanding more the tax base of provincial taxes and augmenting the non-tax revenue collection of the Federal Government.
Fossil Fuels
According to the report, the IMF Executive Board also completed the 2024 Article IV consultation with Pakistan and approved a 37-month arrangement under the EFF of SDR 5,320 million (or US dollar 7 billion).
It was to sign on the twenty-third of May in the year 2024.
We also possess a sharp Fiscal Framework with the IMF too.
In fact, under such scenario, according to the expenditure framework adjusted by the GoP,
The FBR expects to generate 11.1 percent of its total tax revenues from the enhanced policy
And enforcement measures by the fiscal year 2028-29 with overall tax-GDP ratio targeted at 13.7 percent.
As part of this reform the FBR has launched a Revenue Mobilization Program with support from the World Bank.
To this extent, the challenges to then government’s ability to undertake optimal revenue collection under the EFF policies aimed at diversifying the number of sources for such revenues, including in the provincial domain.
Exclusively agreed upon under the MTFF some of the key measures such as phased-out the preferential tax regimes,
extending the PIT CIT base across new sectors and domains which have not complied with the tax net before,
increasing the maximum tax rate from 42.5 percent to 45 percent by decreasing the number of slabs; Simplified the SI/NSI PIT, Extending FED coverage and rates across more sectors, Overhauling
