ISLAMABAD, Mar 7(Alliance News): The International Monetary Fund (IMF) has rejected Pakistan’s proposal to abolish General Sales Tax (GST) on electricity bills, aimed at reducing costs for consumers, during the ongoing economic review talks.
According to media reports, the IMF also refused to extend the winter relief package for the industrial and agricultural sectors for the entire financial year. Meanwhile, discussions continue on reducing circular debt in the energy sector.
During the talks, the IMF was informed that Pakistan plans to borrow Rs 1,250 billion from commercial banks at an interest rate of 10.8% to manage circular debt, with an agreement already reached on this measure.
Proposals have also been made to provide relief to the real estate, property, beverages, and tobacco sectors by reducing their tax burden, subject to IMF approval. Additionally, tax relief for the salaried class is being considered for the next budget.
The government also plans to collect Rs 250 billion in taxes from various sectors, including retail, under a trader-friendly scheme and compliance risk management initiatives.
