The federal cabinet on Tuesday approved new taxes of Rs 140 billion to meet the IMF’s requirements, which will come into effect from July this year.
The meeting, chaired by the Prime Minister, approved the Income Tax (Second Amendment) Act, the State Bank of Pakistan Amendment Act and the State and Enterprises Act. This year, Rs 1.4 trillion will be collected separately by abolishing tax exemptions given to certain sectors.
The IMF has withheld a 6 6 billion loan program to Pakistan to meet its conditions. For this, the international body had set conditions for raising electricity prices, which the Prime Minister had been resisting for a year. But now these two demands have been met along with 30 other conditions for the restoration of the bailout package.
The Federal Board of Revenue has approved the abolition of 80 types of income tax exemptions.