Mini Budget
ISLAMABAD: The Federal Board of Revenue (FBR) has responded to the rumors about the introduction of a mini-budget in the current fiscal year, dismissing the speculations as baseless.
Hamid Ateeq Sarwar, the FBR Member Inland Revenue (IR) Policy, assured journalists during an informal conversation that there would be no need for a mini-budget starting from October 1, 2024.
Dr. Hamid Ateeq further explained that the FBR is confident in meeting its tax collection target of Rs 2,600-2,700 billion for the period from July to September 2024.
The revenue collection will be bolstered through various measures, including recovering outstanding sales tax from gas companies and collecting advance income taxes from the corporate sector and banks. Additionally, the FBR expects to gather Rs 50 billion from income tax returns during this period.
The FBR Member emphasized the board’s ongoing focus on preventing tax evasion in specific sectors, following the directives of Prime Minister Shehbaz Sharif. Efforts to close tax gaps and improve enforcement in key areas will play a crucial role in achieving the revenue target.
Earlier reports had suggested that Pakistan might introduce a mini-budget due to difficulties the FBR was allegedly facing in meeting its tax collection targets.
According to sources, the FBR is required to collect Rs 2,654 billion in taxes during the first quarter of the fiscal year 2024-25, with Rs 1,190 billion needed by the end of September 2024 alone.
Some sources had claimed that if the FBR failed to meet its targets by the close of the first quarter, the International Monetary Fund (IMF) might push Pakistan to implement a mini-budget as part of the conditions to finalize a $7 billion loan deal.
Speculation included possible amendments to the Finance Bill and stricter enforcement against tax defaulters as the government sought to boost tax revenues.
There were also concerns that individuals failing to submit their income tax returns by the deadline of September 30 might be classified as late filers for up to two years.
Late filers could face higher withholding taxes on income, vehicle token taxes, and property-related transactions, further increasing pressure on taxpayers.
Additionally, some sources suggested that tax authorities might be granted additional powers under a proposed mini-budget, leading to more aggressive action against non-compliance.
However, the FBR’s statement appears to refute these claims, stressing that no mini-budget is on the horizon, and the focus remains on achieving tax collection targets through existing measures.
As the end of the first quarter approaches, the FBR is expected to closely monitor its revenue collection progress and implement necessary strategies to meet its goals without the need for further fiscal measures such as a mini-budget.
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