In order to hold talks with the International Monetary Fund (IMF), the federal government is likely to impose heavy taxes of Rs200 billion on Luxury items as preparations for a ‘mini-budget’ are underway.
The development came after the International Monetary Fund (IMF) shared lists of prerequisite actions with Pakistan and said the authorities that government will have to move towards implementing all demands for reviving the stalled Fund programme.
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According to sources the government was considering implementing the mini-budget by 1st February 2023.
As part of the mini-budget, the government is likely to impose additional duties on several luxury goods. The government was also considering withdrawing tax exemptions granted on goods worth Rs70 billion.
It has also been proposed to impose a ‘flood levy’ or ‘withholding tax’ on the banking transactions of non-filers. Meanwhile, it was also proposed to impose a ‘withholding tax’ on bank transactions exceeding Rs50,000 per day.
However, sources said that the proposed tax will not be applicable to individuals included in the Active Tax Payers List. The government estimated Rs50 billion income from withholding tax on non-filers, they added.
The government is considering imposing a flood levy of up to three percent on imports of raw materials and furnished goods. A flood levy will be imposed on the foreign exchange profits of banks.
Earlier this month Prime Minister Shehbaz Sharif held a virtual meeting with the IMF team and agreed to take hard decisions for the revival of the IMF Programme
According to details, The tough decisions include hiking the gas and electricity tariffs and unveiling a mini-budget for imposing more taxation measures to fetch Rs150-200 billion.
It is to mention here that Finance Minister Ishaq Dar already announces that Mini-budget includes some tough measures like imposing a “flood levy” and increasing Duty on Petroleum products in order to stabilize the economy.
Read More : Mini-Budget includes some Tough measures – Finance Minister Ishaq Dar
