IMF seeks tax imposition on shopkeepers in FY 2023-24 budget

ISLAMABAD: The International Monetary Fund (IMF) has demanded imposition of tax over shopkeepers in the new fiscal year budget, citing sources ARY News reported on Saturday.

The global lender has suggested tax imposition over shopkeepers in the Fiscal Year 2023-24 budget of Pakistan as a condition for the bailout package, sources said.

A special scheme will likely to be introduced for slapping tax on shop owners over the condition of the IMF, sources said.

The tax will be imposed under the scheme on electricity bills, sources said.

“The power distribution companies will recover tax from shopkeepers with the electricity bills,” according to sources.

“The Federal Board of Revenue (FBR) preparing a special scheme for imposition of tax on shop owners having 10 million rupees annual income”.

“The monetary fund has suggested to bring two million shopkeepers into the tax net,” sources said.

“The shopkeepers in the special scheme will be included in the active taxpayers’ list,” sources said.

The scheme will be launched for the shop owners and service providers having 10 million rupees income.

The United States has asked Pakistan to implement reforms agreed with the IMF to move forward.

The staff-level agreement that was supposed to be signed on February 09 has been delayed after then over the IMF’s demands.

“The reforms that Pakistan and the IMF agreed to are not easy, but it’s crucial that Pakistan take these actions to bring the country back to sound financial footing, avoid falling into further debt and grow the country’s economy,” State Department official in-charge of Pakistan desk Elizabeth Horst said while addressing a US think tank.

The gathering at the Wilson Center, was also attended by Pakistani Ambassador to the US Masood Khan.