ByIslamabad, Pakistan: The federal government has agreed with the International Monetary Fund (IMF) to implement seven new taxation measures if revenue collection falls short of the projected target by 1% during the current fiscal year.
The IMF report, “Extended Arrangement under the Extended Fund Facility (EFF)” revealed contingent revenue measures agreed by the government of Pakistan for 2024-25. Pro Pakistani
According to the IMF report, the contingent revenue measures include:
- Increasing advance income tax on machinery imports by 1 percentage point
- Increasing advance income tax on raw materials imports by industrial undertakings and commercial importers by 1 percentage point
- Increasing withholding tax on supplies, services, and contracts by 1 percentage point
- Increasing Federal Excise Duty (FED) on aerated and sugary drinks by 5 percentage points
The government aims to raise an additional Rs9.4 billion per month through these measures if necessary. These additional taxes are part of the government’s efforts to meet its fiscal targets and secure IMF approval for the Extended Fund Facility program.
