Islamabad: The International Monetary Fund (IMF) has agreed to cancel the Tajir Dost Scheme (TDS) after the Federal Board of Revenue (FBR) reported significantly higher-than-expected tax collections from retailers, wholesalers, and Associations of Persons (AOPs).
According to a report published by The News, tax revenue from these sectors has already surpassed Rs400 billion—far exceeding the Rs50 billion initially projected under the scheme.
A senior government official confirmed that the IMF was convinced to drop the TDS after reviewing data that showed FBR’s tax collection efforts, particularly through Sections 236G and 236H, had successfully expanded the tax net by bringing more unregistered businesses into compliance. With four months still left in the fiscal year, the FBR expects tax revenue to increase even further.
Following this development, the FBR has introduced Video Analytics Rules to improve electronic monitoring of production processes. This system aims to track production levels in real-time, ensuring greater tax compliance and transparency.
Meanwhile, discussions between the government and the IMF on reducing tax rates for the real estate sector remain unresolved.
As part of the revised fiscal framework, the government has reaffirmed its commitment to achieving a tax-to-GDP ratio of 10.6% for the 2024-25 fiscal year. Due to adjustments in economic projections, the FBR’s annual tax target has been revised downward from Rs12.97 trillion to Rs12.35 trillion.
In a separate regulatory move, the FBR has amended the Sales Tax Rules, 2006, making electronic monitoring mandatory for certain industries. Under SRO 364 (I) 2025, manufacturers must install surveillance and analytics equipment to monitor production in real-time. This system will track output, detect unexpected stoppages, and store data for regulatory oversight.
Additionally, companies managing electronic monitoring must now submit an unconditional bank guarantee equal to 5% of the project cost or Rs5 million, whichever is lower. The guarantee will remain valid for the authorization period and may be forfeited in case of non-compliance.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
