IMF Proposes Rs. 12.9 Trillion Tax Collection Target For FBR Next Fiscal Year

The International Monetary Fund (IMF) has proposed a massive Rs. 12.9 trillion tax collection target for the Federal Board of Revenue (FBR) next fiscal year. Sources told ProPakistani this proposal includes over Rs. 1,500 billion in new taxes. A recent meeting of the economic team with Prime Minister Shehbaz Sharif revealed that instructions have already been issued to finalize these proposals in order to unlock a bigger IMF loan next fiscal year. The suggested measures include increasing tax duties on imported goods and withdrawing sales tax exemptions on various items, including food. Sources added the proposals call for raising withholding taxes, increasing customs duties, and lifting the sales tax exemption on solar panels. There is also a plan to hike the sales tax rate on imported food items. In the upcoming federal budget, the IMF has imposed a condition that Pakistan must end all tax exemptions to unlock a new bailout package.