IMF Recommends Imposing 18% GST on Petroleum Products in Addition to Current PDL
Islamabad: The International Monetary Fund (IMF) is urging Pakistan to implement an 18 percent General Sales Tax (GST) on petrol,
According to reports, the International Monetary Fund (IMF) has advised Pakistan to discontinue sales tax exemptions on all goods, including petrol. Additionally, the newly elected Pakistani government is urged to impose sales tax on petroleum products and introduce a Rs 60 levy to boost tax revenue. Previously, the IMF suggested implementing an 18 percent General Sales Tax (GST) on essential items such as food, medicine, petroleum products, and stationery. Furthermore, the IMF recommended subjecting numerous items, including unprocessed food, stationery, medicine, petroleum products, and more, to the standard 18% GST rate.
Pakistan and IMF Reach Agreement on $1.1 Billion Installment Disbursement
The IMF has projected that streamlining GST rates could yield revenue equivalent to 1.3 percent of the Gross Domestic Product (GDP), amounting to Rs1,300 billion for the national exchequer.
It's worth noting that Pakistan and the IMF have achieved a staff-level agreement regarding the second and final review under Pakistan’s Stand-By Arrangement.
In an official statement released by a team from the International Monetary Fund, led by Nathan Porter, it was announced that the IMF has reached a staff-level agreement with Pakistan concerning the second and final review of the country's stabilization program supported by the IMF's US$3 billion (SDR2,250 million) SBA approval.
Porter noted, "Pakistan's economic and financial standing has shown improvement since the initial review, with growth and confidence steadily rebounding due to sound policy management and renewed inflows from multilateral and bilateral sources."
