IMF Asks Pakistan to Impose Tax on Salaried Persons and Petroleum Products

IMF Asks Pakistan to Impose Tax on Salaried Persons and Petroleum Products

Islamabad: The International Monetary Fund (IMF) has urged the Federal Board of Revenue (FBR) to increase the Tax base for salaried and non-salaried classes. Both entities met on Thursday regarding the first round of Talks to check on the overall performance of the abolishment of Special Tax Regimes and Preferential Tax Treatments. Members of the meeting reviewed the Stand-by Agreement (SBA) along with the tax collection, reforms, and digital initiatives.
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According to the sources, the IMF has requested FBR to increase taxes on petroleum products and other taxes on salaried and non-salaried persons. This tax will range up to 18% and will be imposed on 18% of stationery items, medicines, and unprocessed foods. The IMF also urged to include almost 3 million retailers into the tax net.

The IMF has recommended the review of charitable donations tax credits for certain entities. Additionally, it has also asked to expand the terms of reference for the National Tax Council (NTC) to maintain the tax rates.
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The IMF also recommended the establishment of a Tax Policy Unit within the Ministry of Finance, Revenue, and Economic Affairs. The meeting was also planned to continue on Friday with a focus on the restructuring of FBR.

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