Per information, the Monetary Fund has asked Pakistan to cease sales tax relief on all commodities, including petrol.
The new Pakistani administration should levy Rs 60 on petroleum items and implement sales tax to boost tax revenue.
The IMF previously advised Pakistan to impose an 18% GST on food, pharmaceuticals, petroleum items, and stationery.
The IMF advised bringing several dozen items under 18% GST, including unprocessed food, stationery, pharmaceuticals, POL products, and others.
IMF estimates that reducing GST rates might yield 1.3 percent of GDP, or Rs1,300 billion, in national exchequer revenue.
The IMF and Pakistan secured a staff-level agreement on Pakistan’s Stand-By Arrangement’s second and final assessment.
An IMF team led by Nathan Porter secured a staff-level agreement with Pakistan on the second and final review of the country’s stabilization program backed by the IMF’s US$3 billion (SDR2,250 million) SBA, according to an official release.
“Pakistan’s economic and financial position has improved in the months since the first review, with growth and confidence continuing to recover on the back of prudent policy management and the resumption of multilateral and bilateral inflows,” Porter said.
