Pakistan and the International Monetary Fund (IMF) are working to fill the gap regarding differences over new taxation measures amid the government’s willingness to increase sales tax rate on fertiliser to 10 per cent and slap 17pc tax on import of crude oil to generate Rs115 billion.
According to a report by The Express Tribune, there is also a proposal to tax interest income under normal tax regime, instead of charging a maximum rate of 15pc that is at the lower end.
The talks between the IMF and Pakistan will continue next week, although only five days are left in presentation of the budget for fiscal year 2021-22, said a source that is part of the negotiations.
The report claims that if issues could not be settled at the level of Finance Minister Shaukat Tarin and IMF’s Mission Chief Ernesto Rigo, Prime Minister Imran Khan may talk to IMF Managing Director Christalina Georgieva next week.
