ISLAMABAD – The upcoming government in Pakistan is likely to raise General Sales Tax (GST) on edibles, medicine, and petrol to secure next fundings from International Monetary Fund – IMF.
A report shared in local publication said US-based lender asked apex tax authorities in Pakistan to end sales tax relaxation in its recent report.
It said the multilateral institution shared its report with Federal Board of Revenue with a set of recommendations for the upcoming budget.
In the report, the lender recommended the standard rate of 18pc tax, including unprocessed food, stationery, medicine, POL products and others.
IMF has estimated that streamlining rates could help the upcoming government to rake in additional Rs1,300 billion.
The lender also suggested ending all tax policy changes that hinder compliance, including the removal of minimum and additional taxes.
Lately, the crisis hit Pakistan expressed its intention to request a loan package from the IMF, along with $1.5 billion in climate finance.
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