ISLAMABAD -   The IMF on Monday underlined need for Pakistan to broaden its tax base to enhance revenue collection and help control soaring budget deficit.

The policy level talks for new loan started yesterday. Sources said Finance Ministry, State Bank and FBR held discussions with visiting IMF delegation. The FBR briefed them on measures to broaden tax base and increase collection.

The Fund was informed that FBR had issued notices to hundreds of non-taxpayers recently. It was was also told government had recently started action against tax evaders who had purchased properties of over Rs20 million, or purchased 1800 CC or larger engine cars, or received rent to the tune of Rs10 million or more in a year but not bothered to file their tax returns.

  The drive for the recovery of tax from these big tax evaders is being launched across Pakistan without any discrimination.

Sources added that IMF appreciated FBR’s efforts to broaden the tax base. However, the delegation stressed that efforts should be accelerated to enhance tax collection, which would help the government in controlling the budget deficit of the country.

The officials of Ministry of Finance informed the delegation about its strategy to control the budget deficit. The visiting delegation was told that government had recently announced mini-budget to restrict the budget deficit at 5.1 percent of the GDP. Otherwise, the deficit would have to go beyond 7.1 percent of the GDP.

IMRAN ALI KUNDI