On May 18, a high-level delegation from the Ministry of Finance and the Federal Board of Revenue (FBR) will depart for Doha (Qatar) to meet with the International Monetary Fund.
FBR Chairman Asim Ahmed and top tax officials will also attend the Doha talks. The Ministry of Finance has also directed the FBR to complete the preparations for the Rs. 300 billion budget proposals in accordance with the structural benchmarks set with the IMF.
The FBR-IMF talks are expected to take place in Doha from May 18-21, 2022, according to sources.
The FBR is working on revenue measures worth more than Rs. 300 billion for the upcoming budget (2022-23) in order to meet the estimated revenue collection target of Rs. 7.2 trillion for the next fiscal year. The revision of income tax slabs for the salaried class, as well as other personal income tax reforms, are high on the agenda for the meeting with the IMF.
In the upcoming budget (2022-23), the government plans to withdraw sales tax exemptions on fertilizers, pesticides, and tractors, among other exemptions, and to design a more equitable subsidy scheme for these sectors.
The government will review the remaining sales tax exemptions and concessions available to various sectors as part of the exercise. If necessary, the exemptions would be revoked.
By the end of the current fiscal year, the FBR will have reached a figure of around Rs. 6 trillion. The FBR expects to collect Rs. 6.8 trillion to Rs. 6.9 trillion based on macroeconomic indicators and projected autonomous revenue growth in 2022-23. As a result, revenue measures of Rs. 300 billion may be required to meet the estimated tax projections of Rs. 7.2 trillion for the next fiscal year.