Islamabad: The International Monetary Fund (IMF) has proposed the imposition of PKR 575 billion in additional taxes under Budget 2020-21 to meet the revenue target of PKR 5,100 billion set during its recent round of negotiations with the government – a news source reported.
According to an official of the Federal Board of Revenue (FBR), IMF has been briefed on the impact of the coronavirus on the economy, but any budgetary relief from its end would likely be postponed to next year’s budget.
The two parties, however, have made progress on the reforms proposed under the IMF’s USD 6 billion Extended Fund Facility Programme (EFF); according to which the government will work on further tax integration and expanding the tax net. The fund has also proposed to the government to remove all unnecessary exemptions on taxations planned under Budget 2020-21.
Reportedly, important changes in audit laws are also being considered for inclusion under the budget’s proposed framework. A modern IT-based automated system may also be introduced for the purpose.
