ISLAMABAD: Pakistan and the International Monetary Fund (IMF) are in advanced discussions over the upcoming budget, with the government proposing stricter measures against tax non-filers, according to official sources.
Key proposals include banning non-filers from purchasing vehicles and property, as well as restricting their financial transactions. The government informed the IMF that its recent crackdown on unregistered shopkeepers through higher withholding taxes has increased tax filings by 51% among traders and wholesalers.
Authorities are analyzing third-party data to identify tax evaders and have activated a Compliance Risk Management System in Karachi and Lahore, which will soon extend to corporate tax units. Meanwhile, the government is considering income tax relief for salaried individuals earning up to Rs. 1.2 million annually.
The final budget proposals will be finalized by May 22, with negotiations continuing until May 23. The new budget is expected to be presented on June 2.
Also read:Pakistan-IMF talks on budget proposals to begin from Monday
