As discussions between Pakistan and the International Monetary Fund (IMF) over the 2025–26 federal budget intensify, the Federal Board of Revenue (FBR) has firmly rejected proposals for a new tax amnesty scheme.
Officials reiterated that such measures would violate IMF conditions and pose risks to Pakistan’s financial credibility, especially after the country’s recent exit from the Financial Action Task Force (FATF) grey list.
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According to sources, time is running out as both sides continue to negotiate tax-related reforms. The IMF is pushing for strict implementation of tax laws, while the FBR is working on strategies to enhance revenue, reduce evasion, and expand the tax base.
One major proposal is a significant increase in penalties for retailers using Point-of-Sale (POS) systems who are found evading taxes — raising the fine from Rs500,000 to Rs5 million.
To support enforcement, the government plans to reward citizens who report fraudulent billing, with incentives ranging from Rs5,000 to Rs10,000. University students may also be involved in monitoring violations at retail shops.
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Currently, about 39,000 retailers are registered with the POS system, with the FBR targeting 70,000 registrations by next year. Officials noted that around 20 retailers are being sealed daily for non-compliance.
Meanwhile, during a Senate Finance Committee session, some members suggested a fresh tax amnesty, even for public officeholders. However, the FBR dismissed the idea, citing IMF restrictions and long-term damage to financial reform efforts.