ISLAMABAD: The Premier Shehbaz Govt may consider to introduce mini-budget including additional revenue measures through enforcement and increase in tax rates and reducing the expenditures after massive tax shortages during the four months the current fiscal year.
There is also unconfirmed news that that the IMF mission may visit Pakistan anytime in the coming weeks.
The government has prepared a draft of an ordinance to get approval from cabinet for taking new tax measures very soon. The ordinance may be promulgated during the current month. The FBR claim that the government wants to take some enforcement related measures through the proposed ordinance.
Freezing of bank accounts, banning purchase of plots, vehicles or other steps may be taken enforcement steps through the ordinance, they further said. The FBR may propose the tax measures including to raising withholding tax rates on all imported items, increase in withholding tax rates on sale and purchase of properties.
There is still an option before the government to further decrease the development budget which was already reduced from Rs1400 to Rs1100. Surprisingly; the federal government has utilized only Rs22 billion for development schemes (2 percent of total allocated PSDP) against the target of 20 percent for the first quarter (July-September) of the current fiscal year.
The tax revenue shortfall was recorded at Rs189 billion in the first four months (July-Oct) period of the current fiscal year. Now, there are apprehensions, the tax machinery would continue facing a shortfall in the first six months (July-Dec) period of the current fiscal year around Rs321 billion.
To deal with the massive shortfall, the government has no other option but to consider for new tax measures to align the financial requirement which was agreed with the IMF.
There is also a chance for the government that it will satisfy the IMF through cutting down the expenditure.
The government has been plunged into difficult situation due to shortfall in tax revenue. If, it takes additional revenue measures, the economy of the country may further shrink which is already suppressed.
When electronic media aired the stories, the FBR spokesman issued a statement on Saturday . The spokesman rejected the news channels and said that the new is absolutely baseless and false story. Nether, the FBR made any request to revise the target nor any meeting was held.
