Save Our Pak
Islamabad: The International Monetary Fund (IMF) has agreed to reduce Pakistan’s tax target by Rs 150 billion. Because of this, the danger of a new mini budget on the public is now over for the time being.
According to details, during the recent talks between Pakistan and the IMF, both sides decided not to add new taxes on people. Instead, they made progress on reducing the overall tax target.
Sources said that the IMF has shown willingness to cut the tax target by Rs 150 billion. They added that Pakistan convinced the IMF to soften its tax goals because of the flood damages and economic pressure the country is facing.
After this progress, it was agreed to reduce the Federal Board of Revenue (FBR)’s target for the current financial year from Rs 14,131 billion to Rs 13,981 billion.
During the discussions, the government told the IMF that adding more taxes would increase the burden on citizens. The IMF accepted this view and agreed to some alternate suggestions.
Sources also said that the FBR faced a shortfall of Rs 199 billion in the first quarter of the financial year. The IMF, however, urged Pakistan to raise its tax-to-GDP ratio to at least 11 percent. If this does not happen, it warned, financial problems could increase.
In the end, sources confirmed that after this agreement between Pakistan and the IMF, the threat of a mini budget on the public has been avoided for now.
Reported by Save Our Pak
