ISLAMABAD: International Monetary Fund (IMF) has called for further tightening of the country’s agricultural tax system.
The IMF has recommended imposing an 18% General Sales Tax (GST) on agricultural machinery, fertilizers, and sprays, as well as increasing the federal excise duty on items used in the production of agricultural products.
Additionally, the IMF suggested abolishing the current tax exemption on solar panels, adding more items to the luxury goods list, and raising the sales tax rate to up to 25%. These measures are aimed at achieving the targeted revenue collection.
IMF also emphasized the need for strict action against tax evaders, including imposing penalties and initiating criminal proceedings for tax evasion.
These proposals present new challenges for the government, as they have raised concerns among the public and business communities. A government spokesperson stated that, in light of the current economic situation, the government is reviewing these recommendations.
