IMF calls for further tightening of crackdown on tax defaulters to increase revenue
Islamabad: The IMF has suggested strict measures to increase taxes.
According to sources, the IMF has suggested that stricter measures be taken against tax evaders, that the use of powers by tax authorities be increased and transparency brought in, and that the use of technology be further increased to prevent tax evasion.
Sources in the Ministry of Finance say that it has been proposed to increase the fine for tax evasion at POS from Rs 5 lakh to Rs 5 million, while it is also proposed to register criminal cases along with fines for tax evasion.
Sources say that it is proposed to abolish all tax exemptions, including solar panels, while it is proposed to impose 18% GST on fertilizers, sprays and agricultural equipment.
According to sources, a proposal to increase the federal excise duty rate on agricultural inputs and machinery is under consideration in the budget, while there is also a proposal to increase taxes by adding more items to the list of luxury items. It is proposed to increase the sales tax on luxury items from 25 percent.
It should be noted that Pakistan’s annual budget for 2025-26 will be presented on June 2, and in this regard, Finance Minister Senator Muhammad Aurangzeb says that they are working to provide relief to the salaried class in the budget.