a model of house some coins tag of fbr in white color showe that new tax on property

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Under the “Pakistan Raises Revenues” project, the Federal Board of Revenue has achieved agreements with all provinces regarding the valuation of immovable properties. To improve revenue collection, revised valuation tables will be put into effect beginning with the fiscal year 2024–2025.

Furthermore, the provinces have been informed by the tax apparatus that the FBR will set around 85% of the rates for immovable properties. The updated valuation tables are scheduled to go into effect on July 1, 2024.

The $400 million loan meant to support Pakistan’s efforts to generate income has had its timing and Disbursement Linked Indicators (DLI) adjusted by the World Bank (WB) and Pakistan. The implementation of digital data-sharing initiatives in every province and an increase in the tax-to-GDP ratio from 8.5 percent to 8.8 percent are two significant changes.

Read More: FBR Issues New Procedure for Import of Petroleum Products

The loan terms stipulate that in order to facilitate the development of a single taxpayer database, the Federal Board of Revenue (FBR) must create Memorandums of Understanding (MoUs) for automatic data sharing with each of the four provinces.

To raise FBR’s total collection as a proportion of GDP to 8.8 percent in FY25, the WB’s “Pakistan Raises Revenues” project has been extended until June 2025.

The assessment of customs clearing processes at crossings will henceforth be dependent on real-time data, particularly on goods declarations that are processed in less than 48 hours. “Efficiency in Customs Clearance of Key Exports and Imports” will be the new name for this indicator. 

In order to guarantee the quality and dependability of data, the FBR and provinces have achieved agreements on input modifications and digital data-sharing systems with regard to the General Sales Tax (GST). It has also been possible to harmonize GST with GST on Services (GSTS).

While the provinces have the authority to impose GST on services, the Center is in charge of goods GST. MoUs and agreements on GST input adjustments will be drafted by the FBR; they will need to be approved by the Ministry of Finance and the Ministry of Inter-Provincial Coordination.

The World Bank will carry out its own evaluation of the Memorandums of Understanding with the provinces to guarantee compliance and efficacy, even though agreements between the FBR and provinces will be confirmed internally.

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Syed Sadat Hussain Shah

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