Islamabad: Nov 13 : The caretaker government has conveyed to the International Monetary Fund (IMF) that it would not impose next tax to avoid more burden on the public at large and it will achieve tax collection of Rs 9415 billion through a result -oriented tax collection strategy .
Pakistan economic team led by federal caretaker Finance minister , Dr Shamshad Akhtar, Monday conveyed to the IMF mission which is currently holding negotiations with Pakistani authorities that Pakistan is taking a number of policy decisions to enhance its revenue collection in the on-going fiscal year and their implementation will help the government get tax income of Pakistan to help meet its revenue target of Rs 9415 billion. Pakistan ‘s revenue collection in the first four months of the current discal year has given the confidence to the caretaker government that it can achieve tax collection target of Rs 9415 billion in ,2023-24. Pakistan has achieved 11 % extra tax collection between July -October. Pakistan’s workers remittances have also shown positive trend in October , suggesting Pakistan’s better economic performance in the current fiscal year.
IMF mission is stressing for plugging off its fiscal gap to avoid any economic problems in the future . IMF concern is the gap in financing and its pushing Pakistan in this area. IMF is also demanding of Pakistan to plug off leakage of taxes in real estate sector . Retail business is another area which is a serious concern to IMF. The fund wants that Pakistan should impose retail tax on retailers.
In her informal talk with media , Dr Shamshad Akhtar said IMF has complete confidence in the caretaker ‘s fiscal policies . She added that instead of adding burden of more taxes, the caretaker government will follow the policy of cutting down non- developmental expenditure . She maintained that the revenue collection for the current fiscal year to stay at Rs 9415. She said talks with IMF are heading in the right direction . Pakistan is looking for the next tranche of $ 750 million from the fund in December next and its realization will.depend on the positive outcome of the on-going Pak-IMF talks.