IMF wants new Taxes imposed to meet revenue target

The Federal Board of Revenue (FBR) and International Monetary Fund (IMF) delegation had talks on Monday where the FBR demanded that there should be a reduction in the revenue targets.

However, the International Monetary Fund (IMF) team was not convinced at all and rather they want to meet the revenue target by imposing more taxes.

Taxes in the country are already spiraling out of control and according to the FBR, raises taxes any further will end up raising inflation.

The FBR wants the revenue target to be reduced from the current Rs. 5,250 billion down to Rs. 4,800 billion but the IMF says that the revenue target has already been reduced by Rs. 300 billion by the FBR.

Based on The News report, they say that according to a TV channel, FBR says that there are currently no plans to impose more taxes.

However, a decision has been made by both parties that the decision to reduce the revenue target would be taken up in a policy level meeting.

The International Monetary Fund (IMF) delegation arrived in Pakistan on Monday and they are going to hold meetings and talks till 13 February, 2020.

The main purpose of the visit is to talk about the release of the third tranche $6 billion Extended Fund Facility (EEF).

The IMF will also be reviewing different deparments and issuing a report at the end of their visit.

There will now be quarterly reviews by the IMF of Pakistan’s economy.

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