ISLAMABAD: The International Monetary Fund (IMF) and the Federal Board of Revenue (FBR) have failed to reach an agreement on reducing revenue target.
On Monday, the FBR had demanded reduction in revenue target in talks with an IMF delegation. In Tuesday’s meeting, the FBR failed to convince the IMF team in this regard, Geo and another media hose reported. Sources say the IMF is adamant to meet revenue target after imposing more taxes, whereas the FBR is of the view that imposing more taxes or increasing imports will raise inflation. The IMF says the FBR has already reduced revenue target by Rs300 billion. The sources say the FBR wants revenue target at Rs4,800 billion. At the moment, the revenue target is Rs5,250 billion.
According to another TV channel report, the FBR informed that there is no proposal under consideration to impose more taxes, whereas the IMF has fixed Rs3,520 tax collection target till March 31. It was decided by the two sides that the decision to reduce Rs 5,238 billion revenue target would be taken in a policy-level meeting.