The IMF encourages collaborative efforts between the federal government and provinces for tax recovery, suggesting the imposition of a fixed tax on retailers if there is a shortfall in tax collection after December.
ISLAMABAD: (UrduPoint/Pakistan Point News-Nov 10th, 2023) The International Monetary Fund (IMF) has urged Pakistan to ensure rigorous enforcement of anti-money laundering laws.
The IMF encouraged collaborative efforts between the federal government and provinces for tax recovery, suggesting the imposition of a fixed tax on retailers if there is a shortfall in tax collection after December.
In discussions held in Islamabad for the upcoming review of the $700 million loan tranche, the SBP presented an overview of Pakistan's economic performance from July to March, while FBR officials provided the visiting delegation with insights into tax crimes and presented a comprehensive report.
The officials from the Federal board of Revenue (FBR) and the State Bank of Pakistan (SBP) briefed the IMF on measures taken to combat money laundering and monitor suspicious bank transactions.
IMF representatives instructed Pakistan to formulate a comprehensive policy for identifying and addressing "suspicious transactions" related to tax crimes. They recommended the inclusion of stringent clauses for punishment in the upcoming finance bill. The IMF delegation was informed that Pakistan already imposes strict penalties, including the blocking of bank accounts, for money laundering.
The FBR received a strong call from the IMF mission to enhance efforts in eliminating money laundering through strict enforcement measures. The recent reports indicated that the IMF has called for increased recovery of income tax from the retail and real estate sectors, along with heightened income tax collection on agricultural income.
