The International Monetary Fund (IMF) has insisted that Pakistan implementtaxes on the retail, real estate, and agriculture sectors. This demandsurfaced during the ongoing technical-level discussions between Pakistan’seconomic team and a visiting IMF delegation.
As negotiations progressed, additional requirements from the IMF came tolight. The Federal Board of Revenue (FBR) indicated that, in the event of ashortfall, a fixed tax might be imposed on retailers after December. TheFBR holds the authority to enact this retail tax.
The World Bank has identified potential for the annual collection of Rs3trillion in taxes from the agriculture and real estate sectors. The FBRemphasized the need to consult with provinces regarding the imposition oftaxes on the agriculture sector. The IMF’s recommendations extend tostrengthening enforcement for real estate taxes.
Furthermore, the global lender has proposed enhancing the enforcement oftax policies in sectors with low collection rates. The FBR has submitted aprospective revenue report for the current year to the IMF, with thevisiting mission expected to provide a response within two days.
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During the discussions, the IMF team received a briefing on the task forcededicated to tax policy and administrative affairs.