The International Monetary Fund (IMF) has advised the Pakistani government to consider imposing taxes on stationery items such as books and pens as part of financial reforms.
Sources within the Finance Department have disclosed that the IMF has recommended eliminating tax exemptions currently applied to various stationery products.
This proposal is set to be discussed by the Federal Board of Revenue (FBR) with the Prime Minister in preparation for the upcoming fiscal year 2024-25 budget. Additionally, there are discussions anticipated regarding the potential imposition of sales taxes on essential agricultural equipment like tractors and pesticides.
Highlighting the urgency of economic stabilization, the IMF recently acknowledged Pakistan’s request for a new loan. They emphasized the crucial need for Pakistan to enhance tax collection practices and implement reforms within the energy sector. These measures are integral components of the IMF’s Extended Fund Facility program aimed at bolstering Pakistan’s economy.
The IMF’s recommendation to broaden the tax base aligns with their strategy to achieve sustainable economic growth and fiscal stability in Pakistan. These developments underscore ongoing efforts to address financial challenges and promote equitable economic policies in the country.
