Sources said the global lender was concerned about a tax collection shortfall of Rs129 billion in October and Rs96 billion over the first four months.
It has stressed the need to achieve the annual tax revenue target of Rs15.264 trillion, describing current collections as inadequate and calling for an increase in the tax-to-GDP ratio.
According to Federal Board of Revenue (FBR) sources, if the shortfall widens further, the government may consider imposing additional taxes on the public or reducing government expenditure. Tax collection conditions are also expected to become stricter in upcoming economic reviews, while emergency taxation measures may be discussed if revenue targets remain unmet.
The sources said increasing General Sales Tax (GST) revenue at both federal and provincial levels had been identified as necessary. The IMF may also tighten revenue-related conditions for the next fiscal year and has proposed improving tax collection from the retail, wholesale and agricultural sectors before the next budget.
The lender has further called for bringing all sectors outside the tax net, including professionals, into the formal tax system.
Sources said meeting the conditions agreed under Pakistan’s $7 billion IMF loan programme remained mandatory.