The federal government is expected to introduce a mini-budget during the ongoing fiscal year as it has sent several proposals to the International Monetary Fund (IMF).
According to Daily Jang, officials concerned have proposed ‘urgent’ tax reforms amounting to Rs130 billion in light of a massive tax revenue shortfall.
Documents viewed by Jang state the authorities concerned have proposed increasing excise duty on fizzy drinks by five per cent. If implemented, this additional excise duty would give the government an additional monthly tax revenue of Rs2.3 billion.
Similarly, authorities have proposed implementing a one per cent advance tax on both machine imports and industrial raw materials in a bid to yield Rs2 billion and Rs3.5 billion, respectively, in monthly tax revenue.
Moreover, a proposed one per cent increase in tax on commercial exporters, suppliers, and contracts is expected to generate Rs1 billion per month in revenue.
The IMF has already urged the government to work towards providing a satisfactory standard of living by introducing comprehensive reforms.
The IMF report underscores significant shortcomings in Pakistan’s economic performance, particularly in areas like income per capita, competitiveness, and export growth.
“Pakistan has been falling behind its peers in recent decades in terms of income per capita, competitiveness, and export performance,” the international lender said in its October 10 report.
