Islamabad: The International Monetary Fund (IMF) has expressed concerns over deficiencies in Pakistan’s tax and revenue system.
During discussions on the second day of evaluations as part of the International Monetary Fund’s (IMF) mission, measures to increase the tax-to-GDP ratio were discussed,
and a briefing was provided regarding the Trader’s Friend Scheme aimed at bringing retailers into the tax net.
It was revealed that under this scheme, the registration of traders has accelerated, with over two thousand traders already registered.
The IMF officials were also informed about the forthcoming initiative to bring more than 577,000 non-filers into the tax net.
The process of blocking non-filers’ CNICs is being streamlined. In this regard, a working group comprising representatives from FBR, PITB, and software companies like Tally is being formed.
Furthermore, the IMF was briefed on the implementation of the track and trace system in five sectors, including tobacco, sugar, cement, and beverages.
However, concerns were raised by the IMF regarding deficiencies in the implementation of Pakistan’s track and trace system.
The IMF was also informed about the imminent action against those responsible for deficiencies in the track and trace system.
Discussions were held between FBR and the IMF mission on tax structure and tax administration.
The IMF mission has requested a progress report on the implementation of the track and trace system. Additionally, a report has been submitted to the Prime Minister’s office.
The IMF has urged FBR to expand the scope of the track and trace system to cover five major sectors.
According to the IMF mission, the complete implementation of the track and trace system is recommended for the upcoming fiscal year.
Furthermore, there is agreement between the IMF mission and FBR to accelerate efforts to expand the tax net and curb tax evasion.
Following this agreement, further discussions between the IMF mission and FBR officials are ongoing. Plans are being devised to address revenue shortfalls to meet IMF targets.
