IMF agreed to lower down Tax targets for Pakistan by 119 billion rupees

The international monetary fund has given its agreement to Pakistani Government for scaling down the current year tax target by PKR 119 billion rupees. The Finance minister Mr. Ishaq Dar told in a news conference, that IMF has revised the tax target to Rs 2.691 trillion against the original target of Rs 2.81 trillion. The IMF mission Chief for Pakistan Mr. Jeffery Frank and Mr. Ishaq Dar also announced the successful conclusion of the sixth review of Pakistani economy.
However, it was not decided whether the GOP will cut down its Public Sector Development Program (PSDP) by the same amount of the budget deficit ceiling 4.9% of GDP will be eased.
The next loan tranche will be released despite the government of Pakistan did not met their commitment to introduce energy and tax reforms and give independence to State Bank of Pakistan. Mr. Dar also claimed that FBR’s performance is majorly affected due to decline in Petroleum product prices. The impact of this decrease in tax collection; due to reduction in petroleum product prices is estimated around PKR 68 billion out of which PKR 28 billion is recovered through increasing sales tax. The government has raised the tax to 27% from original 17%.

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