Federal Board of Revenue to impose Rs.40 billion new taxes on direction of IMF

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ISLAMABAD: Federal Board of Revenue FBR has decided to impose Rs.40 billion new taxes on people of Pakistan. The new taxes will be collected by increasing withholding tax rates on contractor and by the special excise duty on imports. As per details, new taxes will be imposed on the demand of IMF. Government could not achieve its taxes collection target Rs. 640 billion and collected Rs. 600 billion and missed the target by 40 billion. The target was given by IMF to government for restricting budget deficit at 305 billion during July- September due to the shortfall in taxes. Government has assured the IMF that Pakistan will take effective measures to increase revenue by Rs. 40 billion to recover the shortfall occurring during July- September. IMF's executive board meeting will be held in Mid-December to approved fresh tranche of $ 502 million for Pakistan. If government fail to impose new taxes, IMF will not approved $ 502 million tranche for government. Government could increase regulatory duties on luxury goods and a hike in excise duties on cigarettes regarding new taxes.