Govt formulates plan to reverse Rs350 billion tax exemptions
ISLAMABAD: The government has knitted a plan to withdraw all tax exemptions in line with the directions of the International Monetary Fund (IMF).
Sources said on Wednesday that in accordance with the plan Schedule 6 of the Amended Finance Bill will be withdrawn which will automatically end tax exemptions worth Rs350 billion.
The petroleum development target for the current year will also be lowered from Rs600 billion to Rs350 billion.
There was a strong possibility that the tax exemptions on mobile phones, stationery and packed food items may be withdrawn whereas reversal of sales tax exemption on zero-rated sector was also expected.
Businessmen Group Chairman Zubair Motiwala while reacting to the plan said the withdrawal of Rs350 billion exemption is actually the tax.
National Businessmen Group Chairman Mian Zahin Hussain was of the view that the withdrawal of tax exemptions would have a negative impact on the economy.
The sources further divulged that the government would charge 17 percent sales tax on those items on which the sales tax was so far less than 17 percent.
The sources said the amended bill after approval from the federal cabinet will be tabled in the National Assembly.
The Government of Pakistan will have to implement all the conditionalities of the IMF before January 12, 2022. TF Report