Bilal Ashraf
Member
The International Monetary Fund (IMF) has urged Pakistan to implement an 18 percent General Sales Tax (GST) on Petrol. This includes ending the sales tax relaxation on all items, including petrol.
The newly elected government of Pakistan is also being pressured to introduce sales tax on petroleum products and levy a Rs 60 charge to boost tax income.
Previously, the IMF recommended that Pakistan's government apply an 18 percent GST on various essentials such as food, medicine, petroleum products, and stationery. Furthermore, the IMF suggested bringing numerous items under the standard rate of 18% GST, including unprocessed food, stationery, medicine, POL products, among others.
According to the IMF's estimations, rationalizing GST rates could result in generating revenue equivalent to 1.3 percent of the Gross Domestic Product (GDP), amounting to approximately Rs1,300 billion for the national exchequer.
It's worth noting that Pakistan and the IMF have reached a staff-level agreement on the second and final review under Pakistan’s Stand-By Arrangement. Nathan Porter, leading the IMF team, confirmed this agreement in an official statement, indicating support for Pakistan's stabilization program with the approved US$3 billion (SDR2,250 million) SBA.
The newly elected government of Pakistan is also being pressured to introduce sales tax on petroleum products and levy a Rs 60 charge to boost tax income.
Previously, the IMF recommended that Pakistan's government apply an 18 percent GST on various essentials such as food, medicine, petroleum products, and stationery. Furthermore, the IMF suggested bringing numerous items under the standard rate of 18% GST, including unprocessed food, stationery, medicine, POL products, among others.
According to the IMF's estimations, rationalizing GST rates could result in generating revenue equivalent to 1.3 percent of the Gross Domestic Product (GDP), amounting to approximately Rs1,300 billion for the national exchequer.
It's worth noting that Pakistan and the IMF have reached a staff-level agreement on the second and final review under Pakistan’s Stand-By Arrangement. Nathan Porter, leading the IMF team, confirmed this agreement in an official statement, indicating support for Pakistan's stabilization program with the approved US$3 billion (SDR2,250 million) SBA.