Pakistan Assures IMF To Add 0.3m More People Into Tax Net.

ISLAMABAD -- Pakistan has assured the InternaAtional Monetary Fund (IMF) for bringing further 0.3 million people into tax net and bringing new law for improving performance of State Owned Enterprises (SOEs).

'We will pursue a substantial exApansion of PIT (Personal Income Tax) base by another 300,000 persons, through the use of data on the withAholding tax of businesses and identiAfy for registration new individuals as well as use of third-party data. If reAquired, we will also conduct physical surveys to book new individuals,' the government has stated in the docuAments sent to the IMF for the seventh and eighth reviews under the extendAed arrangement.

Pakistan has also assured the IMF for improving its revenue adminAistration. 'As of end-June 2022, we have accumulated Rs366 billion in income tax refund arrears, a 67 perAcent increase over the course of the fiscal year as a result of a backlog in processing refund claims. We will clear income tax arrears until the stock is reduced to Rs 225 billion, thus reversing the arrears accumuAlation during this fiscal year, and this will be completed by end-SepAtember 2022.'

The government said it was comAmitted to limiting any future reoccurArence of these arrears and to improvAing tax administration to raise the efficiency of revenue collection and will redouble our efforts to: (1) simAplify tax filing and expand e-services for taxpayers; (2) accelerate the resAolution of refunds and administraAtive appeals; and (3) strengthen the large taxpayer office. The revenue administration priorities are: (1) deAveloping an overarching compliance strategy and setting up a Central Risk Management Unit and a Compliance...