The sources say that the IMF told Pakistan to abolish the sales tax exemptions on all goods including petrol.
ISLAMABAD: (UrduPoint/Pakistan Point News-March 22nd, 2024) The International Monetary Fund (IMF) recommended that Pakistan should impose 18 percent General Sales Tax (GST) on petrol, the sources privy to the development said on Friday.
The IMF emphasized the need for Pakistan to abolish sales tax exemptions on all goods, including petrol.
Earlier, the IMF suggested including various items under the standard rate of 18% GST, covering unprocessed food, stationery, medicine, POL products, and others.
The IMF's estimation suggests that aligning GST rates could contribute to a 1.3 percent increase in Gross Domestic Product (GDP) revenue, translating to approximately Rs1,300 billion for the national exchequer.
It's important to highlight that the IMF and Pakistan reached a staff-level agreement on the second and final review under Pakistan’s Stand-By Arrangement.
In an official statement from an International Monetary Fund team led by Nathan Porter, it was announced that the IMF reached a staff-level agreement with Pakistan on the second and final review of the country’s stabilization program supported by the IMF’s US$3 billion (SDR2,250 million) SBA approved.
