The International Monetary Fund (IMF) has agreed to scrap the Tajir Dost Scheme (TDS) after the Federal Board of Revenue (FBR) reported significantly higher-than-expected tax collections from retailers, wholesalers, and Associations of Persons (AOPs).
According to a report published by The News, data presented to the IMF showed that tax revenue from these sectors had already exceeded Rs400 billion—far surpassing the Rs50 billion initially projected under the scheme.
A senior government official confirmed that the IMF was convinced to drop the TDS after seeing evidence that the FBR’s revenue collection efforts, particularly through Sections 236G and 236H, had effectively brought more unregistered businesses into the tax net. With four months remaining in the fiscal year, the FBR expects to further increase tax revenue.
Following this development, the FBR has introduced Video Analytics Rules to enhance electronic monitoring of production processes. The measure aims to provide real-time tracking of production levels, improving tax compliance and expanding the tax net.
Meanwhile, discussions with the IMF on reducing tax rates for the real estate sector remain unresolved.
As part of the revised fiscal framework, the government has reaffirmed its commitment to achieving a tax-to-GDP ratio of 10.6% for the 2024-25 fiscal year. Due to adjustments in economic projections, the FBR’s annual tax target has been revised downward from Rs12.97 trillion to Rs12.35 trillion.
In a separate regulatory move, the FBR has amended the Sales Tax Rules, 2006, introducing a mandatory electronic monitoring system for specified goods.
Under new regulations issued through SRO 364 (I) 2025, manufacturers will be required to install surveillance and analytics equipment on production lines to track output in real-time.
This system will capture production data, detect unexpected stoppages, and store analytics for regulatory oversight. The updated framework also mandates businesses to complete the monitoring process before moving goods from production sites.
Additionally, the FBR has modified licensing conditions for companies managing electronic monitoring. Applicants must now deposit an unconditional bank guarantee equivalent to 5% of the project cost or Rs5 million, whichever is lower. The guarantee will remain valid for the duration of the authorization and may be forfeited in case of non-compliance.
