Shehbaz Sharif sets ambitious tax target for fiscal year

The Shehbaz Sharif government has announced a significant tax target of Rs12.9 trillion for the upcoming fiscal year, in line with the requirements set by the International Monetary Fund. This target marks a substantial increase of over 41% compared to the projected collection for fiscal 2024. To reach this goal, the government will need to implement additional revenue measures amounting to at least Rs2 trillion.

Despite expectations of a 30% increase in tax collection by the Federal Board of Revenue (FBR) this year, many experts are skeptical about the feasibility of the new tax target. Given the current economic conditions characterized by low growth and low inflation, achieving this ambitious goal will require the government to devise and execute effective strategies for revenue generation.

The Shehbaz Sharif government's decision to set a high tax target reflects its commitment to meeting international financial standards. However, the road ahead is challenging, and success will depend on the government's ability to navigate the complexities of the economic landscape. By prioritizing sustainable revenue generation and implementing sound fiscal policies, the government can work towards achieving its ambitious tax target while ensuring economic stability and growth.