The International Monetary Fund (IMF) has recommended the Pakistani government impose a tax on stationery items including books, pens, etc.
Sources in the finance department told ARY News that the lender has asked the government end tax exemptions on books, pen, paper, sticky note paper, card board and other stationery items.
Sources say that the FBR authorities will brief the prime minister tomorrow on the FY budget 2024-24.
According to budget proposals for the FY2024-25, Pakistan is likely to end exemption on sales and income tax, phase-wise.
The government is also considering imposing a sales tax on tractors and pesticides, potentially leading to price hikes for these essential agricultural products.
Currently, under the Sixth Schedule of the Sales Tax Act, pesticides and their active ingredients registered by the Department of Plant Protection are exempt from sales tax.
Earlier on Monday, IMF released an official statement following discussions with Pakistan. The statement confirmed that Islamabad has formally requested a new loan program from the IMF.
