FBR chairman says IMF is a reality
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Chairman Federal Board of Revenue (FBR), Dr Muhammad Ashfaq said Friday that many things related to taxes and International Monetary Fund (IMF) were twisted in reports.
Addressing a press conference to clear the board’s point of view, the FBR Chairman said IMF was a reality, however, made it clear that many taxes that were claimed to have been levied were not actually imposed by the government.
He said the IMF always wanted to "eliminate the flaws" in Pakistan's tax system.
"IMF had always demanded that the tax system be fixed," the FBR chairman said, during a press conference a day after the government unveiled the Finance (Supplementary) Bill, 2021 and SBP Amendment Bill, 2021 — pre-requisites to resume the $6 billion External Fund Facility (EFF) of the IMF.
Likewise, the taxes that were shifted from one place to another were also misinterpreted, he said adding some changes were made to amend certain laws relating to taxes and duties through the Finance (Supplementary) Bill, 2021.
He was of the view that tax policy reforms were needed for a long time. However, during the previous regimes, whosoever interest groups came, they took their self-interested exemptions by making amendments in the laws and then they went away.
He said it has always been a demand of the International Monetary Fund (IMF) to improve the tax system and help the country increase revenues for self-sustenance.
He said, every time whenever the country went into the IMF programme, new taxes were imposed but the old exemptions, concerning certain economic groups, were not touched upon and these remained embedded with the system.
The exemptions were not withdrawn simply because it would have been a politically very unpopular decision.
Dr Ashfaq noted that tax policy reforms were needed for a long time. However, during the previous regimes, rulers amended the laws to achieve their personal interests and take exemptions.
He said every time the country entered into an IMF programme, new taxes were imposed but the old exemptions, concerning certain economic groups, were not touched upon and remained embedded within the system.