The government has reportedly assured the International Monetary Fund (IMF) of introducing further economic reforms.
According to the official documents, no new tax amnesty, exemption, or discount will be given in the upcoming federal budget. The new budget will be prepared in full consultation with the IMF. The Fund has also been promised that no supplementary grants would be released in the future.
It has also been proposed to increase the annual tax target of the Federal Board of Revenue by Rs1,698 billion, raising the annual tax target from Rs9,415 billion to Rs11,113 billion.
According to the documents, advance income tax collection from businessmen will start from July 1, while the digitization process of the FBR will also be accelerated to increase tax revenue and transparency.
The documents further say that the target of primary surplus is proposed to be equal to 1% of GDP, and it has also been decided to bring several sectors, including retail, wholesale, real estate, and agriculture, into the tax net.
On the other hand, the IMF also demanded that the Shehbaz government speed up the process of economic reform. It has also reportedly complained about the delay in the reforms initiated during the caretaker period.
