nternational Monetary Fund (IMF) has demanded that the Government of Pakistan eliminate all forms of sales tax exemptions as part of ongoing budget negotiations.
According to official sources, the IMF mission is in the final phase of discussions with the Federal Board of Revenue (FBR), with three meetings scheduled in a single day to finalize key fiscal targets.
The IMF is reportedly insisting on a revenue target of Rs 15,264 billion for the next fiscal year, while FBR is attempting to negotiate a lower target due to economic constraints.
Officials said the IMF has also proposed allocating Rs 778 billion under enforcement measures and introducing new taxes worth Rs 430 billion. The FBR is expected to brief the IMF on potential sectors where new taxes could be applied.
Sources confirmed that both sides have agreed on setting the tax revenue target at 11.2% of GDP, although detailed discussions on sales tax reforms are still ongoing.
The IMF has further proposed abolishing all sales tax exemptions and moving toward a uniform tax system. It has also recommended reducing the standard sales tax rate from 22.8% to 18% to create a more balanced taxation structure.
Negotiations between the IMF and Pakistani authorities are expected to continue as both sides work toward finalizing the upcoming budget framework.
