The International Monetary Fund (IMF) is urging Pakistan to implement a tax on stationery items.
According to sources, the FBR officials will provide a detailed explanation of the fiscal year budget for 2024-2025 to the prime minister tomorrow.
As per the budget proposals for the fiscal year 2024-2025, Pakistan is expected to gradually eliminate exemptions on sales and income tax.
The government is contemplating the implementation of a sales tax on tractors and pesticides, which could result in increased prices for these important agricultural commodities.
Presently, in accordance with the provisions of the Sixth Schedule of the Sales Tax Act, pesticides and their active ingredients that have been officially registered by the Department of Plant Protection are granted an exemption from sales tax.
On Monday, the International Monetary Fund (IMF) issued an official statement after engaging in conversations with Pakistan. The statement verified that Islamabad has officially made a request for a fresh loan program from the IMF.
The International Monetary Fund (IMF) delegation, headed by Mission Chief Nathan Porter, conducted a visit to Pakistan and engaged in comprehensive negotiations from May 13 to May 23 to deliberate on the nation’s economic advancements.
The statement acknowledges the Pakistani government’s diligent efforts to boost income and underscores the importance of equitable tax collection from favored industries.
The IMF delegation provided reassurance to Pakistan over their dedication to collaborating for the purpose of achieving sustainable economic growth. The statement emphasized that Pakistan’s economy would achieve stability through the assistance of the Extended Fund Facility (EFF) program.
Pakistan has effectively achieved the objectives outlined in the Standby Arrangement Agreement, which will provide assistance for the upcoming loan program.
The statement emphasizes the importance of broadening the tax base to guarantee economic growth and stability. The IMF advocates for suitable policies and exchange rate measures to manage inflation and highlights the crucial requirement for energy sector reforms in Pakistan.
The statement emphasized the importance of reducing the expenses associated with energy production and highlighted the need for a strict monetary policy until inflation is effectively managed.
The IMF emphasized the necessity of enhancing the performance of state-owned firms and underscored the importance of privatizing these corporations to achieve more efficiency.