Islamabad: The International Monetary Fund (IMF) has proposed a further raise in taxes during FY2020-21. To this effect, the international lending agency provided it’s suggestions during an online video meeting held with the Pakistan Business Council (PBC).
The IMF teams wants Pakistan to increase its property tax revenue by 34% during the next fiscal year. The PBC, however, found the proposal unrealistic as the IMF itself projected that inflation rate in Pakistan will increase at 8% during the upcoming fiscal year, while the expected GDP growth rate was determined at 2% due to negative impact COVID-19 is inflicting on Pakistan’s economy.
The PBC believes that demand for rise in policy rate will worsen the economic conditions by suffocating it further. Sharing more details, PBC Chief Executive Ehsan Malik said that the IMF suggests that Pakistan collects an additional PKR 800 billion by increasing existing taxes or introducing new ones in the upcoming budget.