Islamabad: The International Monetary Fund (IMF) has expressed satisfaction over the budget for the new financial year.
According to the sources, on the demand of the IMF, it has been proposed to remove all tax exemptions in the budget. In the budget, it is proposed to abolish the tax exemption of more than 3 thousand billion rupees. The enforcement of FBR has been enhanced to expand the tax net.
More than 3 thousand 800 billion rupees tax revenues will be collected in the next financial year. The new program is likely to be finalized soon after the government implements the IMF’s preconditions and a staff-level agreement with the IMF is likely to be finalized in June.
Income tax on the salaried class was adjusted to international standards on the demand of the IMF. Technology will be used to prevent tax evasion on the IMF proposal. By limiting energy subsidies, consumers will be charged the full cost of production.
According to sources, privatization of government electricity companies and power sector will be deregulated in the coming financial year, while privatization of government companies will be accelerated. Government companies will be entrusted to government companies of friendly Arab countries.
The sources further said that the political parties will not politicize the IMF program and the provincial governments will also fully implement the new program.
