IMF Drops Tajir Dost Scheme as FBR Reports Record Tax Collection

The International Monetary Fund (IMF) has agreed to scrap the Tajir Dost Scheme (TDS) after the Federal Board of Revenue (FBR) reported higher-than-expected tax collections from retailers, wholesalers, and Associations of Persons (AOPs).

Tax Revenue Highlights:

• Rs400 billion collected, far exceeding the Rs50 billion target under TDS
• Sections 236G and 236H helped bring more unregistered businesses into the tax net
• FBR expects further revenue growth in the next four months

New Monitoring Rules Introduced
To enhance tax compliance, the FBR has rolled out Video Analytics Rules, requiring businesses to install real-time monitoring systems on production lines. These systems will:

• Track production electronically
• Detect unexpected stoppages
• Store production analytics for oversight

Revised Fiscal Targets and Real Estate Discussions

• The government remains committed to a 10.6 percent tax-to-GDP ratio for FY 2024-25
• The FBR’s tax target has been revised down from Rs12.97 trillion to Rs12.35 trillion
• Talks with the IMF on reducing real estate taxes are ongoing

Stricter Licensing Rules for Electronic Monitoring
FBR has also tightened conditions for companies handling electronic monitoring systems:

• Must deposit a 5 percent bank guarantee of the project cost or Rs5 million, whichever is lower
• Non-compliance may result in guarantee forfeiture

With these changes, the government aims to strengthen tax enforcement, reduce evasion, and boost economic transparency.