Govt to Impose 7 New Taxes Even If It Misses FY25 Revenue Target By 1%

The federal government has agreed with the International Monetary Fund (IMF) to take new seven taxation measures during 2024-25 in case the revenue collection falls short of the projected target by 1 percent during the current fiscal year.

The IMF report, “Extended Arrangement under the Extended Fund Facility (EFF)” revealed contingent revenue measures agreed by the government of Pakistan for 2024-25.

The report said that should the 3-month rolling average revenue collection fall short of the projected target by 1 percent, in consultation with IMF staff, we will evaluate the adoption of one or more of the following contingency measures:

1. increase advance income tax on import of machinery by 1 percentage point, expected collection of Rs. 2 billion per month;
2. increase advance income tax on import of raw materials by industrial undertakings by 1 percentage point, expected collection of Rs. 3.5 billion per month;
3. increase advance income tax on import of raw materials by commercial importers by 1 percentage point, expected collection of Rs. 1 billion per month;
4. increase withholding tax on supplies by 1 percentage, expected collection of Rs. 1 billion per month;
5. increase withholding tax on services by 1 percentage point, expected collection of Rs. 0.5 billion per month;
6. increase withholding tax on contracts by 1 percentage point, expected collection of Rs. 0.5 billion per month; and
7. increase FED on aerated and sugary drinks by 5 percentage points, expected collection Rs. 2.3 billion per month.