
The Federal Board of Revenue (FBR) is struggling with a revenue shortfall exceeding Rs500 billion during the first half of the fiscal year, casting doubt on its ability to meet the Rs6,090 billion target, according to sources.
The tax-to-GDP ratio stands at 10.3%, below the targeted 10.6%. Officials attribute this gap to inaccurate budget estimates for inflation and imports. Inflation, projected at 12%, dropped to 4.9%, while imports grew by only 5%, far below the anticipated 16%. This resulted in a 7% decline in import-based tax revenue, further exacerbating the shortfall.
The property sector has also contributed to the deficit. Tax rates of 11% to 12% have significantly reduced property transactions, cutting activity in half. Officials suggested that reducing property taxes could revive the sector and alleviate market pressures. They clarified, however, that the International Monetary Fund (IMF) is not influencing property tax policies.
The FBR is working on potential tax adjustments to address the challenges, particularly in the property sector, but achieving its revenue goals remains a daunting task.
Iranian Foreign Minister Abbas Araghchi has announced that Israel's Benjamin Netanyahu's criminal trial will resume…
Taylor Swift showcased an elegant ensemble on April 9 as she strolled with friends in…
Queen Elizabeth II had a strategic fashion approach that made her easily noticeable in male-dominated…
A man who stole a handbag containing a Faberge egg and watch worth at least…
Renowned spiritual figure Pir Syed Mehr Farid ul Haq Gilani passes away. Pir Syed Mehr…
Princess Maria Carolina of Bourbon-Two Sicilies has confirmed her relationship with France's far-right presidential hopeful…
This website uses cookies.