Islamabad: The IMF has expressed concern over the decline in tax revenue and has suggested emergency tax measures to bridge the shortfall.
According to sources, the international financial institution has expressed concern over the tax shortfall of Rs 129 billion in October and Rs 96 billion in the past four months. The IMF has stressed on meeting the annual tax collection target of Rs 15,264 billion, while calling the current tax collection insufficient and demanding an increase in the tax-to-GDP ratio.

FBR sources say that if the tax shortfall increases further, the option of imposing new taxes on the public or cutting government spending may be considered. The conditions related to tax collection are likely to be tightened further in the next economic reviews, while emergency tax measures will be discussed if the targets are not met.

According to sources, it has been declared necessary to increase revenue under General Sales Tax at the federal and provincial levels. The IMF may further tighten revenue-related conditions for the next fiscal year, while progress has been suggested in tax collection from the retail, wholesale and agricultural sectors before the new budget.

The IMF has also stressed on bringing all sectors outside the tax net, including professionals, into the tax net. According to sources, the conditions set under the $7 billion loan program must be met.