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Pakistan, IMF to Discuss Taxes in Coming Week

Pakistan and the International Monetary Fund (IMF) are working to resolve their differences over new taxation measures in light of the government’s intention to raise fertiliser sales tax to 10 percent and impose a 17 percent tax on crude oil imports to generate Rs 115 billion.

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According to a report, there is also a proposal to tax interest income under the standard tax regime, rather than at the maximum rate of 15 percent.

According to a source involved in the negotiations, the IMF and Pakistan will continue their discussions next week, although only five days remain for the presentation of the budget for fiscal year 2021-22.

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According to the report, if issues cannot be resolved between Finance Minister Shaukat Tarin and IMF Mission Chief Ernesto Rigo, Prime Minister Imran Khan may meet with IMF Managing Director Christoper Georgieva the following week.

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