Mini-budget on govt’s cards as FBR struggles to achieve tax targets

ISLAMABAD: The federal government is contemplating a mini-budget as the Federal Board of Revenue (FBR) is reportedly failing to achieve tax collection goals according to International Monetary Fund’s (IMF) conditions.

As per media reports, the FBR is tasked with collecting Rs 2,654 billion in taxes for the first quarter of the fiscal year 2024-25. Out of this Rs 1,190 billion are needed in September 2024 alone.

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If the tax revenue authority fails to achieve the tax goals, the IMF could push the government to adopt a mini-budget, to qualify for securing a $7 billion loan agreement, sources said.

For the mini-budget, the government is reportedly exploring measures like stricter enforcement against defaulters and potential amendments to the Finance Bill. Moreover, late filers – as per the new category introduced in the FY2024-25 budget – could face higher withholding taxes on income, vehicle token fees, and property transactions for up to two years.

Those who fail to submit their income tax returns by the September 30 deadline will be classified as late filers.

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The mini-budget might also increase the enforcement powers of the FBR, potentially resulting in higher penalties and stricter action against non-compliance.