Pakistan announces additional taxes to meet IMF terms

01 dicembre 2015

2 min di lettura

(AGI) - Karachi, 1 dic. - Pakistan has announced to imposeadditional taxes on various goods and services in a bid toraise an extra 379 million dollars as the government seeks toqualify for its latest International Monetary Fund IMF loantranche (502 million) to be decided in december. The IMFapproved in 2013 a 6.6 billion dollars loan for Pakistan tosupport its program to stabilize the economy and boost growthwhile expanding its social safety net to protect the poor. Theprogram has come with a number of hard-hitting measures such asslashing subsidies in the energy sector and increased taxes.The Finance Ministry has now hinted at new taxes to raise anextra 379 million. Earlier this month, the IMF approved therelease in December of a 502 million tranche of Pakistan´sthree-year 6.68 billion programme, even though the governmentmissed targets for tax revenue generation, net domestic assetsand the budget deficit. According to the Finance Ministry, the government will levyadditional 5 to 10 percentage points of tax on 350 items andraise customs duty by 1 percentage point. The increased levieswould target "non-essential luxury items" only, and exemptionson the customs duty have been offered for 25 key industrialsectors. For enhanced revenue generation, the government alsodecided to deprive the people of the benefits of the tumblingoil prices in the international market. It kept prices ofpetrol and diesel unchanged and decreased kerosene oil'sslightly. The country's Finance minister Ishaq Dar announcedthese measures following the Economic Coordination Committee ofthe cabinet which approved the unpopular and anti-peopledecisions a day earlier. Dar announced increase in tax on theimport of old and used vehicles over 1,000 CC engine power. "We have kept in mind not to increase duties that wouldmake items more expensive for the common man," he claimed.(AGI).