Govt to execute revenue steps from 15th

ISLAMABAD: In light of an unexpected relief in tax measures from the International Monetary Fund, the government has decided to take a proactive approach and implement tax and non-tax measures from Feb 15 instead of March 1 — the purported deadline proposed by the global lender — to secure quick release of $1.2 billion tranche.
Ahead of the start of much-delayed talks, the government was expecting that the IMF would ask for approximately Rs400 billion in tax and non-tax measures, but as policy-level talks came to a close both sides agreed on Rs170bn collec-tion from tax and non-tax measures in the next four and a half months.
Agencies said Federal Board of Revenue (FBR) has already drafted two ordinances to impose Rs100 billion in new taxes and Rs100bn in flood levy on imports. “We were expecting more demands from the Fund in the areas of taxes”, agen-cies reported, adding things have changed in the last two days of policy-level negotiations.
Moreover, FBR is getting extra billions from the massive rupee depreciation as well.

Despite floods, the government will have to discontinue the Kissan Package along with power subsidy in the export sector from March 1. As per agreed FBR tax measures, the government will generate around Rs70bn in the next four and half months from raising the general sales tax from 17per cent to 18pc. The collection alone is 41.2pc of the agreed tax and non-tax measures of Rs170bn. -Agencies