ISLAMABAD: International Monetary Fund (IMF) has expressed satisfaction over the FBR’s performance and sought projection for three more quarters from FBR, sources said on Friday.
The FBR chairman briefed IMF officials regarding increasing tax net and taxpayers, they said.
0.8 to 1 million people will be brought into tax net more and notices will be sent to such persons by the FBR, the chairman FBR briefed the IMF mission.
The number of income tax return filers is expected to be 6.5 million this year, the sources said.
IMF officials’ talks with Pakistani officials will continue till November 15, sources said and added that there will be 10 days of technical talks and 5 days of policy talks, sources said.
An IMF review mission landed in Pakistan on November 2 and reviewed the country’s progress on targets set in a $3 billion programme approved in July this year to bail out the struggling economy.
The IMF executive board had approved the nine-month standby arrangement (SBA) with Pakistan “to support its economic stabilisation programme”. Following the approval by IMF board, the lender disbursed an installment of $1.1 billion to Pakistan.
If the second quarterly review is successful, it will allow for the release of the second tranche worth $710 million.
Sources said that the Federal Board of Revenue (FBR), in its first meeting with IMF review mission, presented a report regarding the tax performance of July-September.
The report encompassed revenue target, payments of refunds and tax rebates as dictated by the IMF during its previous meeting with Pakistan delegation.
The report mentioned that the target of income tax refunds during the period of July-September has been achieved.
The revenue board also assured the delegation of achieving the revenue target of Rs9.415 trillion. Moreover, the review mission was also assured of not introducing ‘any new tax amnesty scheme’.
The FBR report stated that income tax refund payments were being gradually reduced according to the plan. The board did not give tax exemption during the first July-September quarter as agreed in the loan programme.
