Officials of the Federal Board of Revenue (FBR) presented a compliance report to the International Monetary Fund (IMF) at their first technical-level meeting on Friday, where it was revealed that the tax regulator adhered to the lender’s conditions on revenue targets, zero tax exemptions, and cap on tax refunds.
The FBR report confirmed that the tax machinery achieved its target for income tax refund payments during July-September 2023-24, sources informed ProPakistani.
Moreover, the income tax refunds were initially capped at Rs. 250 billion by September 2023. However, the FBR managed to limit these payments to Rs 200 billion, in line with the IMF conditions.
During the first phase of the loan program, the FBR did not provide any tax exemptions, in accordance with the IMF conditions. Additionally, the FBR did not introduce any amnesty schemes while implementing the IMF conditions.
The ongoing negotiations between the FBR and the IMF mission are expected to lead to continued progress in terms of revenue targets, tax exemptions, and refund payments, in line with the established framework. The successful fulfillment of these conditions is crucial for Pakistan to unlock an additional $710 million in the aftermath of the ongoing review.
