News

Pak To Impose Taxes Worth Rs 200 Billion To Comply With IMF Terms: Report


Pak imposes Rs 200 billion worth of taxes to comply with IMF terms: Report

Pakistan is facing its worst economic crisis. (Represent)

Islamabad, Pakistan:

Pakistan has prepared two drafts of new tax decrees worth Rs200 billion, days after it accepted a request from the International Monetary Fund (IMF) to resume its stalled lending program, an official said. said Saturday, Dawn reported.

The drafts are an attempt to weather the worst economic crisis in the country after Pakistan accepted the IMF’s request.

Two draft ordinances are prepared for Rs 100 billion each in tax and flood money. Pakistan is also considering stopping electricity subsidies, imposing sales tax on raw materials for export, as well as raising electricity prices and gas taxes are also on the agenda, Dawn reported.

The IMF team is expected to travel to Islamabad on January 31 for talks after Prime Minister Shehbaz Sharif secured the implementation of these policy measures, which have been delayed by nearly four months for political reasons as they have could promote already high inflation.

“We’ve prepared both ordinances,” a tax official told Dawn, adding that there will be an increase in the withholding and regulatory tax rates on luxury items. Besides, the massive depreciation of the Rupee next week is also expected to create more revenue for the Federal Revenue Commission (FBR).

As Dawn reports, the flood tax money collected by the FBR at the import stage will be used to cover the shortfall in the petroleum development tax (PDL).

The IMF estimated a shortfall of Rs 300 billion under the PDL and asked the finance ministry to increase the tax to Rs 50 per liter on petrol and diesel from the current Rs 35.

The decision is expected during the next petrol price review on January 31, which could lead to an increase in petrol prices between Rs 20 and 40 per liter, Dawn reported, the source said.

The government had to accept the IMF’s terms after the lender refused to budge, however, the damage was done, with foreign exchange reserves falling to multi-year lows of $3.68 billion, just enough to cover three weeks of imports, Dawn reported.

(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)

Featured video of the day

Video: Rahul Gandhi raises the Indian flag in Srinagar on the last day of March

news7f

News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button