ISLAMABAD: Pakistan and IMF take important decisions over the Mini Budgetand the Tax Rate hike in the country.
Pakistan and the International Monetary Fund (IMF) have agreed not tointroduce a rise in the tax rates until June 2020.
In a meeting chaired by Prime Minister Imran Khan’s Adviser on Finance andRevenue Dr Abdul Hafeez Shaikh and IMF Mission Chief for Pakistan ErnestoRamirez-Rigo, the two sides agreed that neither would a mini-budget beintroduced nor would there be a reduction in the tax collection target.
However, it was advised that Pakistan bump up its non-tax income by Rs400billion to boost revenue collection.
The country would also ensure implementation of the privatisation road mapand not jack up the sales tax to 18 percent; the rate would, for now, bemaintained at 17 percent.
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Pakistan, for the most part, had achieved most of the goals the IMF had setfor it. The global financial body was also satisfied over the country’smonetary and current account deficits, they added.
The sources mentioned that Pakistan would make adequate efforts to achievethe tax collection target and that a road map to bring down the deficit andlosses had been readied.
