The International Monetary Fund (IMF) is urging Pakistan to impose taxes on stationery items in the upcoming fiscal year’s budget. The IMF has requested the federal government to remove tax exemptions on books, pens, paper, sticky notes, cardboard, and other stationery products. This proposal will be discussed by the Federal Board of Revenue (FBR) with Prime Minister Shehbaz Sharif soon, according to local media reports on Wednesday.
Additionally, the government is already considering implementing a sales tax on tractors, pesticides, and other essential agricultural products. Currently, pesticides and their active ingredients registered by the Department of Plant Protection are exempt from sales tax.
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The IMF has also advised Pakistan to increase the advance tax on the purchase of immovable properties. The FBR currently imposes a 3 percent tax on filers and a 10.5 percent tax on non-filers, having collected Rs. 80 billion this year. The lender has now directed an increase in advance tax specifically for non-filers.
Furthermore, the IMF has expressed concerns about the escalating financial losses of State-Owned Enterprises (SOEs) and urged Pakistan to divest from them.
In addition, the IMF wants Pakistan to generate an additional Rs. 1.3 trillion in taxes next fiscal year, significantly raising the FBR’s annual revenue target to Rs. 12.3 trillion.
