Federal government to impose new taxes on IMF demand?
Shares
The International Monetary Fund (IMF) has insisted that Pakistan implement taxes on the retail, real estate, and agriculture sectors. This demand surfaced during the ongoing technical-level discussions between Pakistan's economic team and a visiting IMF delegation.
As negotiations progressed, additional requirements from the IMF came to light. The Federal Board of Revenue (FBR) indicated that, in the event of a shortfall, a fixed tax might be imposed on retailers after December. The FBR holds the authority to enact this retail tax.
The World Bank has identified potential for the annual collection of Rs3 trillion in taxes from the agriculture and real estate sectors. The FBR emphasized the need to consult with provinces regarding the imposition of taxes on the agriculture sector. The IMF's recommendations extend to strengthening enforcement for real estate taxes.
Furthermore, the global lender has proposed enhancing the enforcement of tax policies in sectors with low collection rates. The FBR has submitted a prospective revenue report for the current year to the IMF, with the visiting mission expected to provide a response within two days.
During the discussions, the IMF team received a briefing on the task force dedicated to tax policy and administrative affairs.
