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In Islamabad, during the second day of discussions with the International Monetary Fund (IMF), concerns were raised regarding Pakistan’s track and trace system by IMF officials.
The Federal Board of Revenue (FBR) presented steps aimed at enhancing the tax-to-GDP ratio and facilitating retailers through the Trader Friendly Scheme. Progress updates were provided on initiatives such as TaxNet and the registration of traders under the Trader-Friendly App scheme, with approximately 2500 traders already registered.
Efforts to bring over 577,000 non-filers into the tax net were also outlined, including the streamlining of procedures to block non-filers’ names. A working group involving FBR, PTA, and telecom companies is being established for this purpose. Furthermore, the IMF was briefed on the implementation of the track and trace system in sectors like tobacco, sugar, cement, and beverages. Concerns were acknowledged regarding system errors, with recent actions taken against those responsible.
Discussions between FBR and the IMF mission encompassed tax structure, administration, and the IMF’s request for a progress report on the track and trace system’s implementation. Additionally, a report submitted to the Prime Minister’s Office was shared with the IMF mission. The IMF set a deadline for the full implementation of the FBR track and trace system in five major sectors, proposing installation during the next financial year.
Moreover, both the IMF mission and FBR agreed to expedite reform efforts to broaden the tax net and curb tax evasion. Further negotiations between the two parties are ongoing, with plans underway to address revenue shortfalls.