FBR to Finalize Rs. 300 Billion Budget Proposals Ahead of IMF Talks

A high level delegation of the Ministry of Finance and Federal Board of Revenue (FBR) is expected to leave for Doha (Qatar) on May 18 to hold talks with the International Monetary Fund.

Sources told ProPakistani that the FBR Chairman Asim Ahmed and top tax officials would also join the talks to be held at Doha. Ministry of Finance has also directed the FBR to finalize the preparations for the budget proposals of Rs. 300 billion in line with the structural benchmarks set with the IMF.

The talks between the FBR and the IMF are likely to be held from May 18-21, 2022 at Doha, sources added.

The FBR is working on revenue measures of over Rs. 300 billion to be taken under the coming budget (2022-23) to meet the next fiscal year’s estimated revenue collection target of Rs. 7.2 trillion. The revision in the income tax slabs for salaried class and other personal income tax reforms are on the top of the agenda of the meeting with the IMF.

Among other exemptions to be withdrawn, the government would also withdraw sales tax exemption on fertilisers, pesticides, and tractors in the coming budget (2022-23) and design a more equitable subsidy scheme for these sectors.

Under the exercise, the government will review the remaining sales tax exemptions and concessions available to various sectors. The exemptions would be withdrawn, if necessary.

The FBR will reach the figure of around Rs. 6 trillion by the end of the current fiscal year. The FBR has estimated to collect Rs. 6.8 trillion to Rs. 6.9 trillion keeping in view the macroeconomic indicators and projected autonomous growth in revenue during 2022-23. Therefore, the revenue measures of Rs. 300 billion may be required to meet the next fiscal year’s estimated tax projections of Rs. 7.2 trillion.