ISLAMABAD: Following reports of Rs 150 billion shortfall in tax collection by Federal Board of Revenue (FBR) proposal to bring mini-budget of one trillion is on cards.

Federal Board of Revenue confirmed that there will be no extension to September 30 deadline for filing income tax returns, despite an anticipated revenue shortfall. As of now, 1.926 million individuals have submitted their returns, marking an increase of 205,000 filers compared to last year. However, officials highlight that last year saw total of nearly 6 million returns filers.FBR officials have expressed concerns over significant revenue shortfall, with an estimated deficit of Rs 150 billion expected for September alone.

Board is reportedly considering mini-budget proposal worth approximately Rs 1 trillion to address growing fiscal gap. Total revenue shortfall over past two months is projected to exceed Rs 250 billion, threatening government's ability to meet Rs 12.97 trillion tax target for fiscal year.In response to shortfall, FBR is contemplating measures such as imposing uniform sales tax by withdrawing current exemptions and imposing withholding taxes. With International Monetary Fund closely monitoring Pakistan's fiscal performance, FBR faces immense pressure to meet its revenue targets, leaving little room for error. New three-tiered policy targeting non-filers is under consideration to strengthen economic documentation. Under this proposed approach, non-filers will be barred from acquiring cars, immovable property, financial instruments, or opening bank accounts, except for Asaan Account. For those who report an income of over Rs 10 million, all financial privileges will remain accessible under first tier. However, individuals declaring less than Rs 10 million in income must provide proof of their income sources before purchasing cars, property, or financial instruments, although they will still be allowed to open bank accounts.

To address this, proposed strategy includes measures such as disallowing input tax credits on sales to unregistered entities and implementing digital invoicing to track unregistered buyers.