The Federal Board of Revenue (FBR) in Pakistan has set ambitious goals for the current fiscal year, aiming to expand the tax net and further enhance the reach of the Point-of-Sale (POS) system.
In a briefing to Caretaker Prime Minister Anwaarul Haq Kakar, the FBR pledged to add one million new taxpayers to the tax rolls by the end of June 2024, along with integrating an additional 20,000 shops into the POS system. This marks a significant commitment to broadening the country’s tax base.
Notably, in the preceding fiscal year, FY23, Pakistan saw 182,000 new taxpayers enter the tax system, indicating an encouraging trend of increasing tax compliance. To build on this momentum, the FBR is extending the coverage of the POS system to encompass more cities, ensuring a wider reach and greater efficiency in tax collection and monitoring.
Beyond expanding the tax net and POS system, the government is actively working on the strategy for the Integrated Transit Trade Management System, a move that promises to streamline trade processes and enhance revenue collection. The digitization efforts in customs are also ongoing, promoting transparency and efficiency in customs procedures.
Financially, the government has set a revenue target of Rs9.415 trillion for FY24, showcasing its commitment to fiscal responsibility and revenue generation. Impressively, in the initial two months of the fiscal year, revenue collection exceeded expectations, totaling Rs1.207 trillion, surpassing the estimated goal by 2.11 percent.
Furthermore, there was a substantial 38.7 percent increase in domestic tax collection in FY24 compared to the preceding fiscal year, demonstrating the effectiveness of tax policies and enforcement measures.
Additionally, he emphasized the necessity of strengthening cooperation between the federal and provincial authorities regarding tax matters, underlining the importance of harmonizing efforts to ensure a comprehensive and efficient tax system for Pakistan’s economic growth and stability.