ISLAMABAD: The International Monetary Fund (IMF) has reportedly asked the Federal Board of Revenue to impose additional taxes on the retail, real estate, and agricultural sectors.
Sources informed Profit that technical-level talks between Pakistan and the IMF continued on Thursday.
The IMF has particularly suggested stricter enforcement of real estate tax. In the case of a shortfall in tax revenue, a fixed tax may be imposed on retailers during the ongoing financial year.
The lender has recommended that the tax regulator may exercise its powers to levy tax on retailers after December, sources added.
The IMF was briefed that consultation with provinces is mandatory for imposing taxes on the agricultural sector.
Meanwhile, FBR submitted a report to the IMF on potential revenue by the end of the current financial year. The mission team will respond to the revenue report in two days.
The IMF was also briefed about the Tax Policy and Management Task Force under the purview of the tax regulator.
Sources said that FBR has completed its work on separating tax policy from enforcement. A grade- 21-officer will sit in the Finance division to finalize tax policy related matters.
Sources also said that the IMF has sought an implementation report on Track and Trace. It is pertinent to note that talks with the IMF started on November 2, 2023 with both sides sharing critical data for fast-tracking the ongoing review.
If the lender is satisfied with Pakistan’s performance during the review, a second tranche of $700 million is expected to be disbursed.
The successful outcome of the review will undoubtedly have far-reaching implications for the country’s economic stability and its ability to secure continued financial support from the lender of last resort.
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