ISLAMABAD: The International Monetary Fund (IMF) has sought imposition of tax over shopkeepers in the new fiscal year FY-2023-24 budget, according to the sources.
The global lender has suggested tax imposition on shopkeepers in the upcoming budget as a condition for the bailout package, local media said qoting the sources.
A special scheme is likely to be introduced for slapping tax on shop owners over the insistance of the IMF, said the sources further. The tax will be imposed under a scheme on electricity bills. The power distribution companies will recover tax from shopkeepers with the electricity bills, according to the sources.
The Federal Board of Revenue (FBR) is preparing a special scheme for imposition of tax on shop owners having 10 million rupees annual income. The monetary fund has suggested to bring two million shopkeepers into the tax net, according to the sources.
The shopkeepers in the special scheme will be included in the active taxpayers’ list, the sources said. The scheme will be launched for the shop owners and service providers having 10 million rupees income annually. The US had asked Pakistan to implement reforms agreed with the IMF to move forward.
The staff-level agreement that was supposed to be signed on February 9 has been delayed over the issue of IMF demands. “The reforms that Pakistan and the IMF agreed to are not easy, but it’s crucial that Pakistan take these actions to bring the country back to sound financial footing, avoid falling into further debt and grow the country’s economy,” State Department official in-charge of Pakistan desk Elizabeth Horst said while addressing a US think tank.
