Islamabad – Individuals who are aware of the situation declare that Pakistan has been entreated to put into effect an 18% General Sales Tax (GST) on petrol with the aid of the International Monetary Fund (IMF).
On this Friday, information was released to the public. The IMF has also encouraged the new administration to impose a sales tax on petroleum items in addition to a Rs. 60 levy to increase tax revenues, and it has pushed Pakistan to remove sales tax breaks on all goods, including fuel.
Furthermore, the IMF has recommended that some goods, including petroleum products, stationery, medication, and unprocessed food, be charged the usual 18% GST rate. Previously, the IMF had suggested that Pakistan apply an 18% GST on necessities such as food, medication, stationery, and petroleum products.
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As per the IMF’s estimate, the national government may gain about Rs1,300 billion from the 1.3 percent GDP revenue that would result from reducing the GST rates.
Notably, an agreement was reached at the staff level between the IMF and Pakistan about the second and final review conducted under Pakistan’s Stand-By arrangement.
In a statement, the Nathan Porter-led team verified that the IMF and Pakistan had reached a staff-level agreement about the second and final review of Pakistan’s stabilization program, which is backed by the IMF’s US$3 billion (SDR2,250 million) SBA package.
Porter declared, “Pakistan’s economic and financial position has improved, with growth and confidence continuing to recover on the back of smart policy management,” in the months after the original evaluation. and an increase of inflows from multinational and local partners.