Pakistan, IMF agree not to increase tax rates until June 2020

ISLAMABAD (92 News) – Pakistan and the International Monetary Fund (IMF) have agreed not to introduce mini-budget and a rise in the tax rates until June 2020. In a meeting chaired Adviser on Finance Abdul Hafeez Shaikh and IMF Mission Chief for Pakistan Ernesto Ramirez-Rigo, the two sides agreed that neither would a mini-budget be introduced nor would there be a reduction in the tax collection target. Meanwhile, both the parties agree that neither increase profit Rs200 billion till June nor reduction in the tax collection target till June 2020. It was advised that Pakistan bump up its non-tax income by Rs400 billion to boost revenue collection. The country would also ensure implementation of the privatisation road map and not jack up the sales tax to 18 per cent; the rate would, for now, be maintained at 17 per cent. Pakistan would make adequate efforts to achieve the tax collection target and that a road map to bring down the deficit and losses had been readied. IMF and Pakistan would issue separate notifications pertaining to the 10-day talks.