Minister of State for Finance and Revenue Ali Pervaiz Malik has reassured that not only the government has taken up the issue of income tax with the International Monetary Fund but has also advised the lender on tax exemptions.
“[We] have presented our suggestions to the IMF on the issue of tax exemptions,” Malik said while speaking to a news channel. Stressing that the negotiations with the Washington-based lender were continuing in a positive manner, the minister reassured that all efforts were being made to protect the low-income group from soaring inflation.
“Prime Minister Shehbaz Sharif has directed to ensure relief for low-income class,” he said while adding that Islamabad has presented its point of view to the Fund on taxation.
His remarks come as the IMF has conveyed to the Pakistan authorities that the next bailout package under the Extended Fund Facility would only be considered after presenting an aligned budget and securing its approval from parliament.
The arrangement could pave the way for kick-starting formal parleys and signing a staff-level agreement for clinching the fresh bailout package with the possibility to augment it through climate finance in the range of $6 to $8 billion.
The Fund has also asked Pakistan to establish a National Tax Council (NTC) to harmonise the taxes among the Centre and the provinces and raise provincial taxes, especially on agriculture, sales tax on services and property tax.
