ISLAMABAD: The International Monetary Fund (IMF) has declined to offer concessions on most of the items suggested in the Finance Bill for 2024-25.
According to a media report, the Fund has so far agreed to abolish GST on textbooks, restore rebates for professors and researchers, withdraw Federal Excise Duty (FED) on cement, and implement some other technical changes.
The Pakistan government has decided to increase the Federal Excise Duty (FED) on air tickets for international travel, potentially doubling the rate in the Finance Bill. This decision serves as an alternative option for reducing the FED on cement.
The IMF has so far refused to allow the government to restore export proceeds to a fixed income tax regime, despite exporters lobbying hard against transitioning to a normal tax regime.
The government has submitted a proposal to the IMF to restore a fixed regime for exporters, with enhanced rates from 1% to 2% or 3%, in order to secure its approval.
The International Monetary Fund, however, has refused to grant permission. The Fund officials want all incomes, including those of exporters, to be treated under the normal taxation regime.
The government has submitted a proposal to the IMF to restore a fixed regime for exporters, with enhanced rates from 1% to 2% or 3%, to secure its approval.
However, the IMF has refused to grant permission. The Fund officials want all incomes, including those of exporters, to be treated under the normal taxation regime.
