Govt imposes new taxes worth Rs 215b to meet IMF conditions

ISLAMABAD: Federal Government have imposed new taxes worth Rs 215 billion in the budget to meet International Monetary Fund (IMF) conditions, ARY News reported.

Addressing the National Assembly Federal Finance Minister Ishaq Dar said that the petroleum development levy was increased from Rs50 to Rs60 per litre, claiming that the limit of the levy will not cross Rs60.

For the fiscal year starting next month, the federal government will raise a further Rs215 billion in new tax and cut Rs85 billion in spending, as well as several other measures to shrink the fiscal deficit, he said.

He applauded the amendment suggestions given by the coalition parties. He urged the citizens to pay all the pending taxes as the country needed to increase the tax revenue.

Earlier today, Federal Minister for Finance and Revenue Ishaq Dar said that Pakistan has fulfilled all necessary conditions of the International Monetary Fund (IMF) and “no hurdle is now left” in the signing of a staff-level agreement.

The finance minister noted that the government has introduced several changes to its fiscal 2024 budget in a last-ditch effort to clinch a stalled rescue package with the international lender. 

The development came a day after Prime Minister (PM) Shehbaz Sharif met with IMF Managing Director Kristalina Georgieva on the sidelines of the Global Financing Summit in Paris.

During the meeting, the two exchanged views on the ongoing programs and cooperation between Pakistan and IMF. Recalling their recent telephone conversation on 27 May 2023, the premier apprised Ms Georgieva of Pakistan’s economic outlook.