ISLAMABAD: The government has devised an alternative strategy to cover the Rs600 billion revenue shortfall: instead of introducing a mini-budget, it will settle ongoing tax cases in courts.
The International Monetary Fund (IMF) has been briefed on the plan to meet the shortfall through tax settlements. Prime Minister Shehbaz Sharif has pledged full cooperation in expediting these cases.
The Chief Justice of the Supreme Court has approved the government’s request for early hearings of tax-related cases, with a crucial hearing on the super tax scheduled for March 10, according to Mettis Global report.
The Federal Board of Revenue (FBR) expects to secure Rs157 billion under the super tax provision. Additionally, Rs23 billion has been won under Clause 99D of the windfall profit tax, while Rs72 billion has been collected from the advance deposit ratio tax in banks.
Government officers have been given a deadline until September to declare their assets, as part of amendments to the Civil Servant Asset Declaration Act. A digital portal will be launched to facilitate the process, aligning with IMF requirements.
Negotiations with the IMF are ongoing across various economic fronts, including the operationalization of the external financing and tax policy unit. Discussions are also focused on inflation trends, comparisons with other regional countries, and national accounts.
Reports from the Labor Force Survey, Family Budget Survey, and Living Standards Review have been analyzed as part of the IMF discussions. Key issues under review include electricity tariffs, gas tariffs, and circular debt management.
