ISLAMABAD: The federal cabinet has given a go-ahead to withdrawal of various income tax exemptions through a presidential ordinance instead of bringing in a bill in the National Assembly.
The cabinet approved withdrawing income tax exemptions to the tune of Rs140 billion to fulfil the International Monetary Fund’s (IMF) condition to pave the way for release of the third tranche of $500 million, according to the media reports.
The cabinet gave the approval through circulation of a summary which said that the bill couldn’t be presented in the parliament for want of time.
The IMF board is likely to make a decision on the release of the third tranche on March 24. It had set various conditions for the government to meet to unlock the third tranche related to a $6 billion extended fund facility.
The withdrawal of tax exemptions is a prior condition by the IMF to take Pakistan’s request to the Executive Board for approval of the next loan tranche. The IMF has not yet officially released the board meeting date due to a delay in implementing all the prior actions agreed between both the sides last month.
It would be better to provide the details if this 140b. Otherwise readind details is no different then just read the headline.
Can anyone justify why we need IMF funds now when as per Gov’t finance team, our current (balance of payment) account is in surplus. I believe Government contineously cheating the nation.