FBR plans enhanced enforcement to avoid new tax burden of Rs70 billion

FBR will increase enforcement to prevent imposing a new tax of Rs70 billion. Regarding the implementation of the agreed terms with the IMF, the FBR has decided to accelerate the implementation of the Digital Production Tracking System from July 1.

According to the FBR, failure to take enforcement measures would require imposing new taxes worth 70 billion. Monitoring is being increased on the cigarette, cement, poultry, beverage, fertilizer, and textile sectors. The production and sales of the tobacco sector will be monitored through the digital tracking system.

The FBR states that cigarette factories established in various regions will be monitored. Improved monitoring of production in the sugar sector has led to an increase of 3.9 billion in tax revenue. Underreporting of production was happening in the sugar sector.

According to the FBR, the textile sector will also be monitored through cameras; underreporting of 1.5 million bales in the textile sector has been revealed. Sales tax revenue will be raised to an amount equivalent to 5 percent of GDP.

The FBR says that it has agreed with the IMF to increase enforcement measures. In the new fiscal year, the tax target of 1,413.1 billion includes enforcement measures worth 38.9 billion, which also includes additional tax measures of 31.2 billion.