Govt Takes Major Step on IMF Demand to Tax Pensioners

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has reportedly managed to convince the International Monetary Fund (IMF) not to impose tax on pensioners. Sources told ProPakistani that the IMF and Pakistani tax officials on Monday held discussions to finalize tax proposals, including taxing pensions. Sources said that the finance minister has managed to convince the IMF against taxing pensions in the upcoming budget. Earlier, the Federal Board of Revenue (FBR) had prepared proposals to tax pensioners however the prime minister directed the authorities to talk to the IMF not to impose tax on pensions. In the virtual talks, proposals to impose a uniform tax on business and salaried class were discussed, sources said. The Pakistani authorities presented several suggestions to the IMF to impose a uniform tax on business and salaried classes. Sources said that both sides have agreed to continue virtual talks on tax proposals ahead of the upcoming budget. Sources further said that the government team will also brief the prime minister on today’s talks with the IMF.