Pakistan to impose Rs 170 billion in taxes

IMF Headquarters, Washington, DC. [Photo: Wikimedia]

Pakistan has agreed to impose new taxes to recover an additional Rs 170 billion in revenue, including through a 1% increase in the General Sales Tax (GST) rate, in just four months.

This would be in addition to the withdrawal of unbudgeted power subsidies for farmers as well as exporters to meet the conditions of the International Monetary Fund (IMF) for the revival of its stalled loan programme, The Express Tribune reported.

The yearly impact of the new tax measures would be more than Rs 500 billion. The government has also assured the IMF of raising gas tariff and petroleum levy rates to chase a much-delayed staff-level agreement.

On Friday, the Finance Minister of Pakistan Mohammad Ishaq Dar said that the government has received a memo from the IMF outlining the terms and conditions for the conclusion of a USD 7 billion loan programme.

Dar made the statement after an IMF delegation, which left Pakistan on Thursday night after 10 days of talks with the government, and said virtual discussions would continue on the ninth review of the programme, PTI reported.

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