ISLAMABAD: The federal government is putting together a mini-budget that will include some stringent policies, such as enacting a “flood levy” and raising the tax rate on petroleum items to fulfil the commitment to the International Monetary Fund (IMF).
The National Security Committee has already received the “Economic Roadmap” (NSC) on Monday.
The NSC emphasized that comprehensive “national security” revolves around economic security, sovereignty, and independence at its two sessions on Friday and Monday to discuss the country’s economic and security circumstances.
The government of Pakistan had committed with the IMF to take fresh tax collection measures (which could also be called a mini budget) if the monthly tax collection target gets missed in the ongoing financial year.
“If monthly revenue data show signs of underperforming against the Q1 FY23 and subsequent targets, we will take immediate action to raise additional revenue,” Pakistan stated in written to the IMF a few months before.
The Federal Board of Revenue (FBR) faced a shortfall of Rs225 billion for achieving the desired target for December 2022, as the tax collection stood at Rs740 billion against the fixed target of Rs965 billion.
The authorities envisaged an annual tax collection target of Rs7,470 billion but in the wake of Rs225 billion, it would be hard to go close to the desired annual tax collection target.
In the NSC meeting, it was decided to slap “flood levy” in the range of 1 to 3% through the promulgation of a presidential ordinance and firm up a proposal for unveiling the mini budget, according to a report in The News.
The proposal is expected to be finalized within the ongoing week.
The committee approved the rationalization of imports and now the government is all set to slap a flood levy in the range of 1 to 3% to curtail imports and fetch Rs60 billion into the second half (Jan-June) period of the current fiscal year.
The finance minister, according to the publication, is likely to grant assent to the mini-budget proposals within the next two to three days after which a presidential ordinance will be promulgated.
