ISLAMABAD
International Monetary Fund (IMF) has demanded for imposition of 18 percent GST on petroleum products and solar system. This will lead to jack up prices of petroleum products and solar system. As per media report, IMF has handed over list of new demands to government. Proposal has been given to enhance tax target by over Rs 1600 billion in new fiscal year. IMF has demanded for slapping 18 percent GST on fuel including petroleum products. At present GST ratio on petroleum products is zero. IMF has demanded for imposing 18 percent tax on solar consumers besides ending tax exemption on new houses.
IMF has proposed to impose tax on small businesses and traders on the basis of assets besides fixing tax target over Rs 15600 billion in new budget.
During the current year, the tax target was reduced from Rs 14131 billion to Rs 13979 billion. Despite reduction of Rs 152 billion in tax target, a short fall of Rs 428 billion was witnessed in 8 months.
According to FBR authorities that shortage in tax recovery is feared to exceed Rs 600 billion in the first 9 months of financial year. Recovery over Rs 865 billion has been made so far in March while target is set Rs 1367 billion. The FBR is hopeful to overcome the deficit due to recovery of surcharge and super tax.
Finance ministry has said more talks will be held with IMF before advent of new budget.
