IMF asks Pakistan to ‘do more’ for tax collection, seeks privatisation plan
ISLAMABAD (MNP) – The International Monetary Fund (IMF) has asked the Pakistani authorities to ‘do more’ besides doing away with the special tax system for the construction sector.
The Fund directed the Pakistani authorities to revoke tax exemption for non-profit organisations and re-examine the tax incentives given to the charities.
The IMF demanded withdrawal of tax collectors and the cabinet members’ discretionary powers.
According to sources, the IMF demanded enhanced cooperation from the provinces for the collection of taxes from the federation and the implementation of provincial tax laws. It also recommended establishment of a tax policy unit in the Ministry of Finance.
It was recommended that a comprehensive data transfer system between the Federal Board of Revenue (FBR) and other institutions must immediately be set up.
The IMF team was briefed that a new banking model had been introduced for payments to 9.3 million people under sponsorship programme.
Meanwhile, the IMF also asked for a plan on the privatisation of PIA and other state-owned enterprises.
