The International Monetary Fund (IMF) has demanded Pakistan impose tax on retail, real estate and agriculture sectors.
This has been revealed during the ongoing technical-level talks between Pakistan’s economic team and a visiting delegation of the IMF.
During the negotiations, further demands put forward by the IMF have emerged.
According to the Federal Board of Revenue (FBR), in case of a shortfall, a fixed tax could be imposed on retailers. The FBR may exercise its powers to levy retail tax after December.
The World Bank says there is room for the collection of Rs3 trillion in annual taxes from agriculture and real estate sectors.
The bureau said that it was necessary to consult the provinces over imposition of taxes on the agriculture sector. The IMF has also called for a tightening of enforcement for real estate taxes.
The global lender has also suggested effective enforcement of the tax policy in sectors where collection was low.
The FBR has also submitted a prospective revenue report for the end of the current year to the IMF. The visiting mission is supposed to respond to the revenue report within two days.
The IMF team was also briefed on the task force on tax policy and administrative affairs.
Economists say that the provincial governments should also play an effective role in tax collection from services, agriculture, and business class along with improving the tax machinery.
