Pakistan Vows No Tax Amnesty in 2024-25, Prioritizes Fiscal Discipline

Pakistan has made a strong commitment to fiscal responsibility by pledging to avoid tax amnesty schemes in the upcoming fiscal year (2024-25). This move aligns with their letter of intent submitted to the International Monetary Fund (IMF) and emphasizes their dedication to achieving long-term financial stability.

Key Points:

• No Tax Amnesty: Pakistan has committed to refraining from tax amnesty programs in fiscal year 2024-25.
• Fiscal Consolidation: The government aims to achieve a primary budget surplus (excluding grants) of PKR 401 billion (0.4% of GDP) in 2024 and maintain this focus in subsequent years.
• Revenue Mobilization: Efforts will be directed at broadening the tax base, particularly in undertaxed sectors. Initiatives include: Registering and collecting taxes from non-filing retailers and supply chain operators. Implementing policy reforms to improve tax collection efficiency. Incentivizing provincial tax collection efforts.
• FBR Reforms: Plans to modernize the Federal Board of Revenue (FBR) are on the agenda, incorporating best practices and digitalization initiatives to enhance transparency, revenue collection, and taxpayer experience.
• Budget Transparency: The government pledges to strengthen the budget process by: Improving credibility and transparency. Eliminating supplementary grants that could undermine fiscal discipline.
• Limited Guarantees: Guarantees issued by the government will be restricted to predetermined amounts.
• Sustainable Fiscal Policies: By prioritizing these measures, Pakistan aims to build a robust economic foundation for future growth and development.

Looking Ahead:

Pakistan's commitment to fiscal discipline is a positive step towards achieving economic stability. Collaboration with international partners, domestic stakeholders, and continued focus on creating an investment-friendly environment are crucial for success. This strategy emphasizes responsible fiscal practices while promoting equitable economic opportunities for Pakistani citizens.

This article was published at Pakistan Vows No Tax Amnesty in 2024-25, Focuses on Fiscal Discipline