By Ahmed Mukhtar Naqshbandi
ISLAMABAD: The nation is likely to bear the brunt of a mini-budget in the coming days as the global lender, International Monetary Fund (IMF), has asked Pakistan to further raise taxes on luxury items.
According to the sources, the International Monetary Fund (IMF) has asked for increasing tax over unnecessary and luxury items as the government has assured them of announcing revenue generation steps most likely in the next week. There are proposals to increase tax on cigarettes and drinks also. The non-filers might also be the target of the government’s decision in the mini-budget.
A proposal is also under consideration for imposing federal excise duty (FED) over air tickets and also enhancing 50 paisa per stick excise duty on expensive cigarettes. Moreover, the government is also considering enhancing tax on energy drinks and slapping flood levy on income.
The sources said a proposal to enhance excise duty on vehicles for non-filers is also under consideration. It is also being mulled to hike the rate of the capital value tax on property and withholding tax on cash withdrawal from banks for non-filers. The IMF has expressed concern over fiscal indiscipline and mismanagement in government departments.
IMF’s concerns
The global lender has expressed dissatisfaction over persistent losses in state-owned entities, according to the sources. The monetary fund has also demanded restricting the state interference in the economy by resorting to privatization as it insisted on regular audit of government departments, according to the sources.
To meet another condition of the global lender, the federal government on Saturday made it mandatory for all the government officials of grade 17 and above to declare their assets. A notification to this effect was also issued by the Federal Board of Revenue (FBR). According to the notification, the government has also asked the public servants to submit detail of their overseas assets, if any.
