The International Monetary Fund (IMF) rejected Pakistan’s proposal to reduce the general sales tax (TPS) on electricity bills.
The IMF’s decision poses challenges to Pakistan’s efforts to relieve consumers in the midst of current economic reforms, said Express News reported on Friday.
According to sources, the world lender also refused Pakistan’s request to extend the winter rescue package for the industrial and agricultural sectors throughout the exercise.
Hands some chil, discussions between Pakistan and IMF continue to reduce circular debt in the energy sector.
Pakistan informed the IMF on its plan to combat circular debt by guaranteeing a loan of RS1.25 Billions of commercial banks at an interest rate of 10.8%. An agreement on this loan would have been finalized.
In addition, proposals are being studied to grant tax relief to real estate sectors, properties, drinks and tobacco. If it is approved by the IMF, tax charges on these industries will be reduced.
For the next budget, there are suggestions to reduce tax charges on employees.
Meanwhile, a plan to perceive RS250 billion taxes in various sectors, including retail, is in place. The final approval of all the measures proposed will be subject to the approval of the IMF, according to sources.
