The Federal Board of Revenue (FBR) has introduced stringent enforcement measures to regulate the financial activities of high-income taxpayers in Pakistan. Under the new guidelines, taxpayers who are compliant can only withdraw up to Rs. 30 million in cash annually. Additionally, individuals earning over Rs. 10 million are permitted to purchase vehicles; however, they must provide proof of income prior to acquiring any property.
For those earning below Rs. 10 million, there is a requirement to substantiate their income before they can make investments in vehicles, real estate, or financial instruments such as securities and mutual funds. These steps are part of the government’s broader strategy to achieve an ambitious tax collection target of Rs. 12.97 trillion for the current fiscal year.
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The FBR is targeting to amass Rs. 450 billion from these new initiatives, which include restrictions on cash withdrawals and real estate purchases. Despite experiencing a notable revenue deficit in the initial quarter, Prime Minister Shehbaz Sharif has confirmed that there will be no introduction of a mini-budget.
Finance Minister Muhammad Aurangzeb is expected to engage in discussions with International Monetary Fund (IMF) officials next week to explore solutions for the prevailing economic challenges. Amid rising inflation and optimistic growth forecasts, the FBR remains confident in meeting its fiscal objectives, although both high-income taxpayers and non-filers are anticipated to face increased scrutiny and pressure in the upcoming months.
