FBR Commits to IMF to Raise Taxes on Digital Markets During FY24

Mon Jan 22 2024
icon-facebook icon-twitter icon-whatsapp

ISLAMABAD: The Federal Board of Revenue (FBR) will increase taxes on digital markets to increase tax collection during the current fiscal year.

The International Monetary Fund (IMF), in its latest report, “First Review under the Stand-by Arrangement,” revealed Pakistan’s government commitments to the fund.

The government has assured that the outcome of the tax diagnosis scheduled for the second quarter of 2023-24 will play an important role in identifying the necessary additional reforms to ensure the achievement of the budget (2023-24) target.

Significant Increase in Tax-to-GDP

It will also establish significant increases in tax-to-GDP over the coming year through increased taxation of undertaxed sectors (including property, construction, retail, development, and digital markets) and supportive administration efforts.

The government has also informed the IMF that the policy rate was raised to 22%, and it stands ready to respond resolutely if near-term price pressures re-emerge, including due to stronger-than-expected second-round effects on core inflation, or if pressures on the exchange rate re-emerge amid the normalization in the current account.

icon-facebook icon-twitter icon-whatsapp