ISLAMABAD (Mudassar Ali Rana) – Prime Minister Shehbaz Sharif has directed that no mini budget will be introduced this fiscal as the government works on a comprehensive budget strategy for the next financial year focusing on relief for the salaried class and industrial sector.
Official sources on Wednesday told Dunya News that the government would attempt to bridge the tax shortfall through enhanced revenue collection rather than imposing new taxes. Efforts would be made to persuade the IMF to agree to no additional taxes during the remaining period of the current fiscal year, they added.
According to the sources alternative measures would be adopted to increase tax revenues while efforts to curb smuggling would be intensified. Action against tax evaders and non-filers would continue, with the Federal Board of Revenue stepping up enforcement. A special wing of the FBR has been auditing non-filers who display lavish lifestyles on social media platforms, including X (formerly Twitter), Facebook, Instagram, and TikTok. Covert operations are reportedly underway to collect data and take action against such individuals, they continued.
Work has begun on the directive of prime minister on providing relief to the salaried class, and a strategy is being formulated for inclusion in the upcoming federal budget. The prime minister has also instructed authorities to prepare proposals to reduce tax rates for industries, the sources revealed.
Under a new industrial policy to be announced in the next budget, a reduction in the super tax rate for the manufacturing sector has been planned. As part of structural reforms the super tax rate for the manufacturing sector will be gradually reduced to 5 percent over the next four years. Subject to the achievement of a primary balance surplus the super tax will be abolished in the fifth year, they stated.
“The government believes that these measures will support economic growth, encourage industrial activity and provide much needed relief to salaried individuals amid ongoing fiscal challenges,” concluded the sources.