ISLAMABAD: The federal cabinet has given a go-ahead to withdrawal of various income tax exemptions through a presidential ordinance instead of bringing in a bill in the National Assembly.
The cabinet approved withdrawing income tax exemptions to the tune of Rs140 billion to fullfil the International Monetary Fund’s (IMF) condition to pave the way for release of the third tranche of $500 million.
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The cabinet gave the approval through circulation of a summary which said that the bill couldn’t be presented in the Parliament for want of time.
The IMF board is likely to make a decision on the release of the third tranche on March 24. It had set various conditions for the government to meet to unlock the third tranche related to $6 billion extended fund facility.
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Last month, Pakistan and the International Monetary Fund (IMF) reached a staff-level agreement on second to fifth reviews of the country’s reform program under the IMF Extended Fund Facility (EFF).
