FBR Proposes Tax Rate Reduction for Key Sectors Amid Shortfall in Annual Tax Collection Target
Islamabad:In response to a shortfall in the annual tax collection target, the Federal Board of Revenue (FBR) has proposed a reduction in tax rates for certain sectors to the International Monetary Fund (IMF).
FBR has recommended lowering the tax rates for the tobacco, real estate, and beverage sectors for the next three months (April to June). The proposal aims to address the significant decline in volume and transactions in these sectors due to the current tax rates.
With this reduction, FBR forecasts an additional collection of approximately 100 billion rupees for the national exchequer during the three-month period.
Pakistani authorities have informed the IMF of this proposal, but it remains unclear whether the tax rate reduction will be implemented within the current fiscal year or included in the upcoming budget for fiscal year 2025-26.
