ISLAMABAD – The International Monetary Fund (IMF) has suggested the imposition of taxes on the retail, real estate, and agricultural sectors during ongoing talks with Pakistan on the first review of the $3 billion Standby Arrangement
According to the media reports, the global lending agency has suggested imposing a fixed tax on retailers during the ongoing fiscal year in case of failure to achieve the revenue collection target.
The IMF insisted on imposing a tax on the real estate sector.
IMF delegation was informed that consultation with provinces was necessary for imposing taxes on the agricultural sector.
The lender suggested seeking a timeframe from provinces for bringing the agriculture sector into the tax net.
The IMF was also briefed on the tax policy and management task force under the purview of the tax regulator.
If the IMF is satisfied with Pakistan’s performance during the review, a second tranche of $700 million will be disbursed by December.
Caretaker Finance Minister Dr Shamshad Akhtar and the IMF’s Mission Chief Nathan Porter led both sides’ delegations and held one-on-one meetings during this week.
