IMF, Pakistani economic wizards lock horns over additional taxes

The deadlock between the IMF team and Pakistan economic gurus seems to persist as the international money-lender refuses to let go of its condition of levying additional taxes on Pakistani people, reported 24NewsHD TV channel on Tuesday.

According to sources, the IMF has given a target to the Federal Board of Revenue to levy additional taxes and set Rs6,000 billion collection target. 

The lending agency has asked the government to introduce extra taxes in the upcoming budget of fiscal 2021/22. 

The sources said the government had termed Rs6,000 billion tax target unrealistic pleading to the lender that it was hard to levy additional tariffs on already economically stressed people. 

However, talks are still ongoing with the IMF, the sources added. 

See Also: Shaukat Tarin rues IMF harsh attitude

FBR Chairman Asim Ahmed said that no additional tax would be introduced in the next budget. He vowed to provide tax relief in the upcoming annual financial plan.

He said instead of raising tariffs, the tax recovery would be increased through enforcement, explaining that the government would widen the tax net in a bid to meet the IMF target.

On Sunday last, Federal Finance Minister Shaukat Tarin had said the International Monetary Fund has tightened the screws around Pakistan by showing a rigid attitude towards the country.

Tarin expressed his disappointment over the harsh attitude, the international money lender adopted towards Pakistan. He said the IMF has asked the government to raise the amount of taxes on salaried class, which the government thought unwise and difficult to be implemented.

He said the government was presently holding parleys with the IMF officials in an attempt to bring them around. 

Reporter Waqas Azeem