Islamabad: The government failed to convince IMF to reduce sales tax in electricity bills.
According to sources, the International Monetary Fund has rejected the request of the Ministry of Energy, in which the government had sought the IMF’s opinion on reducing sales tax in electricity bills.
The IMF has said in this regard that exemption from new taxes cannot be given under the loan program. According to sources, the IMF has explained that it will not be possible to achieve tax targets with sales tax exemption.
It should be remembered that 18 percent GST is levied twice on electricity bills. Once, 18 percent tax is levied on the total amount of the bill, while the second time, sales tax is also levied on fuel cost adjustment.
