ISLAMABAD: International Monetary Fund asked Pakistan to impose roughly Rs 600-800 billion in additional taxes in second round of talks to revive $ 7 billion Extended Fund Facility (EFF) stalled for months. According to details, Federal Revenue Board held second round of technical talks with IMF mission, led by Mission Chief to Pakistan Nathan Porter on ninth review of $ 7 billion loan programme.

During meeting, Fund set tough conditions for additional measures. Pakistan was willing to impose taxes to tune of Rs 200 billion through ‘mini-budget’, while Fund pressed Islamabad to foist over Rs 600 billion additional taxes. Lender demanded government increase tax collection to 1 percent of Gross Domestic Product. Sources claimed that Fund demanded government fix next fiscal year’s tax collection target at Rs 8.3 billion. Sources claimed that IMF demanded to end phase-wise incentives of Sales Tax. It also demanded to increase Sales Tax on petrol from 11 percent to 17 percent, sources said, adding that Fund demanded to end Rs 110 billion relief granted to textiles and other industries.

According to sources, government will increase power tariff by Rs 6.79 per unit and it will increase stepwise in next five months.

Published in The Daily National Courier, February, 02 2023

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