International Monetary Fund (IMF) recommends government to increase General Sales Tax (GST) in Pakistan by 18%.
IMF proposed to increase GST in Pakistan by 18% to the federal government. However, it would allow the government to gain extra Rs 160 billion in taxes. According to financial analysts, the government of Pakistan is in uncertainty as it requested IMF that it will lower the burden of indirect taxes.
However, the IMF delegation is asking for tax efforts equal to the 0.4% Gross Domestic Product (GDP) or the Rs160 billion comprising part of the comprehensive fiscal adjustment, as per the Ministry of Finance sources.
IMF also asked Federal Board of Revenue (FBR) to create the strategy for the tax refunds disbursement and then submit it to them before the end of policy level talk.
Recently, FBR levies the 3% extra tax than the standard of 17% GST on the unregistered persons and if government accepts IMF proposal then the GST in Pakistan will reach to 21%.