Islamabad: The Federal Board of Revenue (FBR) has negotiated agreements with all provinces as part of the “Pakistan Raises Revenues” initiative, focusing on the valuation of immovable properties, according to a news report published today. Commencing in the fiscal year 2024-25, revised valuation tables will be implemented to bolster revenue collection efforts.
The tax machinery, in collaboration with the provinces, has determined that approximately 85 percent of the rates notified for immovable properties will be determined by the FBR. The planned implementation of the revised valuation tables is slated for July 1, 2024.
Furthermore, adjustments have been made to the timing and Disbursement Linked Indicators (DLI) for a $400 million loan facilitated by the World Bank (WB) aimed at enhancing Pakistan’s income generation endeavors. Notable modifications include raising the tax-to-GDP ratio from 8.5 percent to 8.8 percent and instituting digital data-sharing initiatives across all provinces.
Under the loan terms, the FBR is mandated to develop Memorandums of Understanding (MoUs) for automatic data exchange with all provinces, facilitating the establishment of a unified taxpayer database. The timeframe for the WB’s “Pakistan Raises Revenues” project has been extended to June 2025 to achieve a tax collection of 8.8 percent of GDP in FY25.
