IMF Approves Tax Relief for Salaried Class
IMF rejected the proposal to abolish GST on electricity bills to reduce prices for electricity consumers. Economic review talks between the IMF and Pakistan are ongoing. The issue of reducing circular debt in the energy sector with the IMF is also part of the talks.
IMF refused to allow the extension of the winter relief package for the industrial and agricultural sectors for the entire financial year.
The proposal to abolish GST on electricity bills to reduce prices for electricity consumers was also rejected.
During the briefing, the IMF was told that a loan of Rs 1,250 billion would be taken from commercial banks to control circular debt. This loan would be taken at an interest rate of 10.8 percent. An agreement was reached.
According to sources, there is a proposal to provide relief to the real estate, property, beverages, and tobacco sectors, a proposal to reduce the tax burden on the salaried class is also under consideration in the next budget,
With the approval of the IMF, the tax burden on these sectors will be reduced. According to sources, there is a plan to collect Rs 250 billion in taxes from various sectors, including retail, taxes will be collected through administrativemeasurese, including the Tajir Dost scheme and compliance risk management. Final approval of all measures will be taken from the IMF.
According to sources, tax officials led by the Chairman of the FBR gave a briefing on the reorganization of the institution.
He told about the implementation of digitalization and data integration underway with the support of international organizations. He said that the information obtained through the use of data and technology will be used to increase tax collection.
The delegation was briefed on new laws to prevent tax evasion. The IMF mission will give its opinion on tax reforms in the policy talks.
