FBR reacts to mini budget rumours

ISLAMABAD: The Federal Board of Revenue (FBR) reacted to the ‘rumours’ of introducing a mini budget in the current fiscal year, ARY News reported.

In an informal conversation with journalists, Hamid Ateeq Sarwar, the FBR Membesr Inland Revenue (IR) Policy, denied the rumors of introducing a mini budget.

“There would be no need to introduce a mini-budget from October 1,” he added.

Dr. Hamid Ateeq said that the FBR aims to collect Rs 2,600-2,700 billion in taxes from July to September.

This target is expected to be achieved through various measures, including sales tax recovery, outstanding sales tax will be recovered from gas companies, and advance income tax collections from the corporate sector and banks.

“Rs 50 billion  are expected to be collected from income tax returns,” Dr. Hamid Ateeq Sarwar  said.

The FBR Member Inland Revenue (IR) Policy said the board will focus on preventing tax evasion in specific sectors, as directed by the Prime Minister (PM) Shehbaz Sharif.

Earlier, it was reported that Pakistan is likely to introduce mini budget as the Federal Board of Revenue (FBR) is facing difficulties in meeting its tax collection targets.

According to sources, FBR needs to collect Rs2,654 billion in taxes for the first quarter of the fiscal year 2024-25, with Rs 1,190 billion required in September 2024 alone.

“If FBR fails to meet the target by the end of the first quarter (July-September), the International Monetary Fund (IMF) may push Pakistan for a mini budget in order to seal $7bln loan deal,” the sources said.

The government was reportedly considering several measures to boost tax collection, including stricter enforcement against defaulters and possible amendments to the Finance Bill.

There was also concern that individuals who fail to submit their income tax returns by September 30 could be classified as late filers for up to two years. Late filers would face higher withholding taxes on income, vehicle token taxes, and property-related transactions.

Sources further said, tax authorities may be granted additional powers under the proposed mini-budget, potentially leading to more aggressive action against non-compliance.