With the tax shortfall potentially reaching Rs 400 billion by December’s end, the All Pakistan Business Forum (APBF) has proposed broadening the tax base through appropriate legislation to ensure equitable taxation for all income earners, including those in the agriculture sector.
In a statement, Forum President Syed Maaz Mahmood noted that the Federal Board of Revenue (FBR) collected Rs4.29 trillion in the first five months (Jul-Nov 2024), falling short of the Rs4.64 trillion target. Despite achieving 23% growth, a 40% increase is needed to meet the Rs13 trillion annual target.
He mentioned that the IMF would assess December’s tax collection before deciding on a new tax-heavy budget. The IMF’s condition to include agricultural income in the tax net could help boost tax revenue. “Otherwise, the burden will again fall on the industry.”
According to a report by Express Tribune, Mahmood acknowledged that the agricultural income tax bill still has a long way to go before it becomes law and revenue starts flowing in.
He emphasized that there had been significant progress in both fiscal and current accounts, which showed a surplus.
The APBF president also recommended ending amnesty schemes, as they discouraged honest taxpayers, and proposed imposing penalties on tax evaders. He suggested formulating appropriate laws to allow the government to seize local assets or impose taxes if individuals hold assets abroad without established sources of income.
