Pakistan has assured the International Monetary Fund (IMF) that it will implement Rs. 200 billion worth of additional tax measures in January if revenue targets fall short or expenses exceed agreed limits in the first half of the fiscal year.
The commitment is part of efforts to keep the country’s $7 billion IMF bailout programme on track.
According to report by Express Tribune, the proposed measures include higher income tax rates on landline and mobile calls, as well as increased withholding tax on cash withdrawals from banks. The steps will only be triggered if the Federal Board of Revenue (FBR) misses its end-December target or if government spending rises above agreed thresholds.
Other contingency measures under consideration include raising the sales tax on solar panels from 10% to 18% and expanding the federal excise duty (FED) to cover confectioneries and biscuits. The government is also weighing an increase in the standard sales tax rate to 19%, which could generate Rs. 225 billion annually, but is currently prioritizing targeted measures on withholding tax, sales tax, and FED.
The FBR is already struggling to meet its targets, with a Rs. 198 billion shortfall in the first three months of the fiscal year. As of October 29, tax collection stood at Rs. 3.65 trillion, leaving the FBR needing Rs. 460 billion more in just 48 hours to meet its four-month goal.
Among the proposed measures, the government may double the withholding tax on cash withdrawals for non-filers to 1.5%, potentially raising an additional Rs. 30 billion annually. The current rate is 0.8%. The government is also considering increasing the withholding tax on landline phones from 10% to 12.5%, which could generate Rs. 20 billion per year, and raising the tax on cellular calls from 15% to 17.5%, expected to bring in Rs. 24 billion annually.
A further proposal would impose a 16% FED on confectioneries and biscuits, aiming to collect Rs. 70 billion in revenue each year. If implemented, the effective tax rate on processed foods could reach 38% after accounting for sales tax, FED, and other levies.
The government’s contingency plan comes as the provinces of Sindh and Punjab have deferred the collection of agriculture income tax at enhanced rates of up to 45% for one year. Meanwhile, the FBR’s plans to broaden the tax base remain largely unimplemented, with existing taxpayers likely to bear the brunt of new measures.
The IMF has so far refused to lower Pakistan’s annual primary budget surplus target of 1.6% of GDP, or Rs. 2.1 trillion, but has promised to review the target once final flood loss estimates are available. The World Bank has already revised its economic growth forecast for Pakistan upward to 3% after flood losses proved less severe than initially feared.
The government expects to recover half of the Rs. 200 billion in additional taxes during January-June 2026, subject to final approvals and the IMF’s agreement on fiscal targets.
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Govt should put the whole nation in juicer to extract all the blood and enjoy their lavishes.
Basically tax everything except the rich and the landlords and industrialists
All taxes do is destroy the economy
Since this govt has arrived.
All is done is increase their own wealth and increase taxes on the people . Every few days new taxes
Do you want Nepal , bangladesh treatment ? Seriously .
Why is this govt so incompetent that you have lost all credibility.
Increase tax-net by taking following steps.
1. Sincerity, honesty of the dept employees, which is still a big question mark in the eyes of educated, professional citizens of the country.
2. Collect taxes from shopkeepers, Tehkedars, Butchers, Feudal lords and etc.
3. Do not further press salaried class by increasing taxes that will ultimately hit them anyways.
4. Have deleted point number 4 related to lack of accountability……..
Imposing taxes to collect more revenue by pressing all is very easy thing specially after AI is just one click effort.
They are increasing taxes on salaried class.
Tax the Pakistani Generals (mafia), they’re very rich elite, looting the country without any shame. They are purchasing islands, property and assets in other countries after retirement.
so middle class taxes further increased? why people in government have High salaries to begin with if they don’t even know how to do their job and just manage.
Why not taxes on elite and industrialist class. Eyes are only kept on middle class to make more and more burden on individual.
Stop all allowances which are given to judges and parliament members. Pay them only salary.
This is exactly why one should not register with FBR and keep one’s money out of banks from where gov/FBR can seize it. Excessive taxation has killed the formal economy.
they should rather seize the free electric units, gass, expensive vehiles , free fuels to govt officils, security protocols etc… specially prime minister package may immediately be withdrawn from uniform persons as they martrayed almost on everyday instead of f**** public a**. by implimenting such non sense taxes.
Incompetent Rulers alway strive for betterment of their own life style not the civilians they rule.
Pakistan parlimemt houses, establishment and all civil departments are being held by the incompetent chaps that’s why living standard of pakistani nation is at the lowest point in history.
The growth figures Pakistan government is claiming is just on papers amd ground realities are way to different.
پہلے بھی ملک ان نا اہلوں کی وجہ سے ٹیکس کے پیسوں سے ہی چل رہا ۔۔۔ اور یہ حرام خور عوام کے ٹیکس کے پیسوں پہ عیاشیاں کر رہے ہیں
Wow they take loan for personal uses and pay from our pockets as a citizen of Pakistan my demand to IMF is to seize all their assists in foreign countries and clear this loans be they from whichever party pmln ppp pti any oarty
ہماری پیاری حکومت کا کوئی کام سیدھا بھی ہے انہوں نے کبھی یہ سوچا ہے کہ عام آدمی کو بھی کوئی ریلیف دیا جائے