The International Monetary Fund has urged Pakistani authorities to bring agriculture, real estate, and retail sectors into the tax net during an ongoing review of the $3 billion stand-by arrangement.
According to the Federal Board of Revenue sources, the tax collection plan has been shared with the global lender’s team and the IMF will recommend further measures after reviewing the plan.
During the talks, both sides identified potential areas for bridging financing shortfalls and agreed on further measures if FBR failed to achieve the tax collection target.
The sources said FBR is mulling imposing a fixed tax on retailers, however, the IMF is reluctant to accept such a proposal.
The lender has demanded Pakistan seek a timeframe from provinces for bringing the agriculture sector into the tax net.
The IMF was also briefed on the tax policy and management task force under the purview of the tax regulator, sources said adding that the global mender urged Pakistan to achieve tax collection target.
Pakistan and the IMF high-ups have continued parleys for striking a staff-level agreement under the $3 billion SBA programme from November 2 and the talks would conclude on November 15, 2023.
