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Pakistan Misses Tax Target by Rs270bn as Government Prepares Contingency Levies for IMF Program

The plan would activate in January only if midyear goals slip, even as a record 5.9 million returns points to a broader compliance push.

Overview

  • FBR collected Rs3.84 trillion in July–October against a Rs4.109 trillion goal, with October at roughly Rs950–955 billion versus a Rs1.026 trillion target and refunds of about Rs205 billion weighing on net receipts.
  • Authorities told the IMF they will trigger up to Rs200 billion in additional taxes from January 1, 2026 if first‑half revenue underperforms or expenditures exceed agreed limits under the $7 billion EFF.
  • Draft steps include raising non‑filer withholding on cash withdrawals to 1.5%, increasing levies on landline and mobile calls, lifting GST on solar panels to 18%, and imposing a 16% FED on confectionery and biscuits.
  • Coverage of the review says the government rejected an IMF proposal to raise general GST to 19% and that the Fund dismissed Pakistan’s suggested flood levy.
  • Compliance gains continue, with 5.9 million returns filed by October 31 (up 17.6%), 3.6 million paying filers, nearly Rs69 billion paid by individuals, and the prime minister seeking models to reduce high tax rates.