According to insider reports on Tuesday, the federal government hasofficially declined the International Monetary Fund’s (IMF) demand for anaugmentation in luxury import taxes. Nevertheless, contrasting accountssuggest that this demand may have merely been a procedural step in theongoing discussions.
The IMF had reportedly asked the government to raise taxes on luxuryimports as a means to ensure the fulfillment of tax objectives establishedin their agreement. As per these sources, the IMF’s proposal suggestedimplementing these tax increases through an ordinance.
Conversely, government sources assert that such a request was declined dueto the Federal Board of Revenue’s recent accomplishment of raising Rs24billion in taxes over the past two months, making the attainment of thefirst-quarter target of Rs30 billion seem attainable.
Read Top Stories
Furthermore, government insiders also contend that the IMF has expressedcontentment with the government’s performance in revenue collection.Nevertheless, an alternate source informed Aaj News that, while an increasein luxury item taxes would generate significant revenue, it would notsubstantially contribute to the IMF’s lofty demand of over Rs200 billion intax targets
