Govt submits budget working paper to IMF, suggests 750 bln new taxes

ISLAMABAD: The government has submitted its working plan of the fiscal year 2019-20’s budget to the International Monetary Fund (IMF), ARY News reported on Thursday.

In the upcoming budget the government will likely to announce Rs. 750 billion’s new taxes, the working paper suggests.

According to the budget paper, the new federal budget will likely to recommend taxes on sugar, gas and other essential commodities.

The government also considering over hike in General Sales Tax rate on sugar, while federal excise duty will likely to be imposed on gas, sources said.

It has been decided to impose sales tax on retail price of electronics items and foam products in the new budget.

The standard General Sales Tax rate will likely to be enhanced to 18 percent from existing 17pct, according to the working paper.

The government has decided to hike the rate of federal excise duty on cigarettes and beverages. A decision in principle made to impose 5pct customs duty on Industrial Liquefied Natural Gas (LNG) which will be finalized in budget after approval from the Advisor of Finance.

The government has also decided to introduce the unified Value Added Tax (VAT) in the budget.

A seven percent customs duty will likely to be imposed over the import of furnace oil.