” IMF recommendations to impose significant costs on Pakistanis ” | GNN INFO
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ISLAMABAD: The International Monetary Fund (IMF) has recommended the government of Pakistan to implement 18 per cent General Sales Tax (GST) on food, medicine, petroleum products, and stationery.
the IMF has estimated that the rationalisation of GST rates could yield revenues of 1.3% of the Gross Domestic Product (GDP), equivalent to Rs1,300 billion in the national kitty.
However, the IMF has not made its assessment about how much this indirect taxation would fuel inflation in the months to come.
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Overall, the IMF has called for the removal of all distortionary tax policy changes related to compliance, including the abolition of minimum taxes and additional taxes, as well as the abolition of the Ninth and Tenth Schedules.
It has also asked for removing reduced rates under the Eighth Schedule and to bring all goods to the standard GST rate except a small number of essentials such as food staples and vital education and health items, to be taxed at a single reduced rate of 10%.
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