ISLAMABAD: In order to break deadlock with International Monetary Fund (IMF), government is likely to impose taxes to tune of Rs 200 billion as preparations for ‘mini-budget’ are underway. Development came after International Monetary Fund shared lists of prerequisite actions with Pakistan and told authorities that Islamabad will have to move towards implementing all demands for reviving stalled Fund programme.

Earlier in day, it was reported that Finance Minister Ishaq Dar sought Prime Minister Shehbaz Sharif’s assistance after failing to pacify International Monetary Fund for reviving loan programme. Sources told that Dar will attend crucial meeting with IMF officials from Qatar via video link, whereas, PM Shehbaz will also attend virtual meeting. Sources told that government was considering implementing mini budget from February 1, 2023. Government is all set to promulgate Presidential Ordinance to impose taxes to tune of Rs 200 billion. As part of mini budget, government is likely to impose additional duty on several luxury goods. Government was also considering withdrawing tax exemptions granted on goods worth Rs 70 billion. It has been proposed to impose ‘flood levy’ or ‘withholding tax’ on banking transactions of non-filers. Meanwhile, it was also proposed to impose ‘withholding tax’ on bank transactions exceeding Rs 50,000 per day.

However, sources added, proposed tax will not be applicable to individuals included in Active Tax Payers List. Government estimated Rs 50 billion income from Withholding Tax on non-filers, they added.

Sources claimed that government may impose flood levy up to three percent on imports of raw material and furnished goods. A flood levy will be imposed on foreign exchange profits of banks, sources added.

Sources say IMF has sought roadmap from Pakistan for collection of petroleum levy till June 30, 2023. Pakistani authorities have to jack up levy on diesel by Rs 15/litre and drag it to Rs 50/litre.

Published in The Daily National Courier, January, 25 2023

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