The mission has emphasized the importance of increased cooperation from provinces in tax collection and the enforcement of provincial tax laws.
ISLAMABAD: (UrduPoint/Pakistan Point News-March 15th, 2024) International Monetary Fund (IMF) on Friday called upon Pakistani authorities to implement additional measures beyond eliminating the special tax system for the construction sector.
The IMF emphasized the importance of increased cooperation from provinces in tax collection and the enforcement of provincial tax laws.
It also suggested establishing a tax policy unit within the Ministry of Finance.
While acknowledging Pakistan's progress towards economic stability, the IMF advised the adoption of stricter policies.
Among its recommendations, the IMF urged the government to cease tax exemptions for non-profit organizations, reassess tax incentives for charities, and eliminate the discretionary powers of tax collectors and cabinet members.
The IMF also recommended the immediate establishment of a comprehensive data transfer system between the Federal board of Revenue (FBR) and other institutions.
The IMF delegation, led by Mission Chief Nathan Potter, initiated the final review process of the $3 billion Stand-By Arrangement (SBA) with the aim of releasing the remaining $1.1 billion.
During discussions, Pakistani officials including Finance Minister Muhammad Aurangzeb, State Bank of Pakistan (SBP) Governor Jameel Ahmad, and FBR Chairman Malik Amjad Zubair Tiwana briefed the IMF team on the current situation and government priorities.
The officials assured the IMF that the revenue generation targets for the fiscal year would be met without introduction of new taxes.
The talks between Pakistan and IMF are scheduled to continue until March 17.
