The federal government of Pakistan has unveiled its fiscal year 2024-25 budget, totalling 18,877 billion PKR, despite facing a budget deficit of 8,500 billion PKR.
The government has allocated 1,400 billion PKR for the Federal Development Program to support development initiatives. Additionally, the Federal Board of Revenue is tasked with generating 12,970 billion PKR in revenue, of which 7,438 billion PKR will be distributed to the provinces.
The government has finalized plans to initiate stringent actions against 3 million non-filers to tighten compliance. These measures include disconnecting gas and electricity connections for those failing to file tax returns, aiming to enforce compliance and broaden the tax base.
These disconnection policies will be implemented immediately, reflecting the government’s commitment to enhancing tax collection efficiency.
Furthermore, the budget proposes significant amendments to the tax laws to increase the tax net. This includes continuous efforts to block non-filers SIMs, reinforcing the government’s strategy to combat tax evasion.
The budget also suggests revised tax rates for the upcoming fiscal year; filers are subject to a proposed 15% tax rate, while non-filers could face a harsh 45% rate. Additional punitive measures under consideration include banning non-filers from international travel and imposing a 75% tax rate on mobile phone calls for this group, with the initial step of blocking their mobile SIMs already approved.
These proposals highlight the government’s aggressive approach to ensure tax compliance and address the fiscal challenges, aiming to stabilize the economic environment and ensure equitable revenue distribution.
