The Federal Board of Revenue (FBR) has officially communicated its proposed tax policy reforms to the International Monetary Fund (IMF). The goal is to register one million more non-filers of income tax returns.
In a series of meetings held on Monday, the FBR and the technical team from the IMF started discussions on crucial reforms and measures to expand the tax base. During these sessions, the FBR presented its proposed tax reform measures, emphasizing the separation of tax policy from the FBR and introducing various initiatives to broaden the tax net.
Heading the team briefing the IMF, FBR Chairman Amjad Zubair Tiwana elaborated on the strategy devised to achieve the annual revenue collection target of PKR 9.4 trillion for the fiscal year 2023-24. The FBR expressed its commitment to meeting the assigned collection target and informed the IMF that it has identified potential new taxpayers by leveraging available data, such as mobile phones and CNICs. The FBR also plans to collaborate with registered associations, including tax bar associations, to encourage non-filers registration.
Additionally, the FBR has set an ambitious target to double the number of tax return filers by the end of June 2024, with the current figure standing at 3.2 million. The task force responsible for this initiative is expected to present both short- and long-term strategies, incorporating modern technology to enhance tax revenue. Discussions have emphasized enforcement measures to bolster overall revenue generation, mainly targeting potential areas such as the real estate sector and retailers.