Islamabad: The International Monetary Fund (IMF) has demanded a one and a half percent increase in tax revenue from the government.
According to the announcement issued by the IMF, the staff level agreement of the IMF with Pakistan worth about 7 billion dollars has been concluded. Negotiations were held between the Ministry of Finance and the IMF between May 13 and 23.
The IMF’s Extended Fund Facility Program will be for a period of 37 months. The agreement with Pakistan will be subject to the approval of the IMF Executive Board. Pakistan will have to provide financing assurances from its financial partners.
According to the declaration, the government will have to increase the tax revenue by one and a half percent while bringing retail, export and agriculture into the tax net. Provinces will take steps to raise taxes from their own sources.
Sales tax on services and agricultural income tax will have to be increased while legal complications will be removed before January 1, 2025. Benazir Income Support Program, education and health budgets will have to be increased.
