The federal government has proposed additional tax measures worth Rs200 billion to bridge the revenue gap in the second half of the current fiscal year, after the Federal Board of Revenue (FBR) failed to meet its tax target for the first half.

According to official sources, the proposal — shared with the International Monetary Fund (IMF) during the recent staff-level agreement — outlines several new taxes that may impact non-filers, solar panel imports, and telephone users.

While the FBR chairman has denied plans for a mini-budget, officials confirmed that the IMF was briefed on a contingency plan outlining potential tax hikes if the revenue shortfall continues. The measures are seen as part of important conditions linked to the next tranche of the $7 billion IMF loan program.

Officials said that if the government’s income remains below expectations and affects the loan programme, “further tax measures will be inevitable.”

Key proposed tax increases

Under the plan, several tax adjustments have been proposed to raise additional revenue:

Cash withdrawals by non-filers: Tax rate may rise from 0.8% to 1.5%, expected to generate Rs30 billion.
Sales tax on solar panels: Proposed increase from 10% to 18%, which could significantly raise costs for renewable energy users.
Telephone taxes: Tax on mobile calls may increase from 15% to 17.5%, and on landline phones from 10% to 12.5%, expected to yield Rs44 billion combined (Rs24 billion from mobile calls and Rs20 billion from landlines).
FED on consumer goods: A 16% Federal Excise Duty (FED) on biscuits, sweets, and chips is projected to generate an additional Rs70 billion in revenue.

FBR faces major shortfall

The FBR reported a revenue shortfall of Rs198 billion in the first quarter, collecting Rs2,885 billion against a target of Rs3,083 billion. For the first four months, the collection target is set at over Rs4,100 billion, while the overall annual target for FY2024–25 stands at Rs14,131 billion.

Officials warned that without new tax measures, the government may be forced to cut the development budget or revise the annual tax target downward.