Government turns to tax arrears recovery to meet ambitious revenue target
Summary
The government plans to recover over Rs100 billion from long-pending tax disputes through a limited-time settlement offering to meet its ambitious Rs1.4 trillion revenue target for the next fiscal year.
Key Points
- The government aims to collect over Rs100 billion from disputed and unpaid taxes to meet a Rs1.4 trillion revenue target.
- Finance Bill, 2026 introduces a scheme allowing taxpayers to settle dues by paying assessed tax plus 1% while waiving penalties and fees.
- 1,311 unresolved tax cases amounting to Rs172.33 billion are currently pending with the Inland Revenue Department.
- The scheme aims to incorporate informal businesses into the formal economy and relieve taxpayers from accumulated fines and litigation burdens.
