Govt Set to Impose Rs. 30 Billion Worth of Additional Taxes

The federal government has decided to present Money Bill before the International Monetary Fund (IMF) Executive Board meets at the end of August. Sources told ProPakistani that the government intends to promulgate an ordinance for the collection of additional taxes worth Rs. 30 billion. They also revealed that the Federal Board of Revenue (FBR) has already taken steps in this regard. Finance Ministry intends to collect these additional taxes for providing funds to Pakistan State Oil (PSO). In recent days, fears were rampant that PSO could default because of mounting international payments. According to FBR sources, the government has also decided to provide small traders with tax relief on electricity bills. To minimize the impact of this tax relief on the revenue collection target, more taxes would be put in place. Finance Minister Mifath Ismail recently stated that government would exempt small retailers using less than 150 units from tax on electricity bills owing to strong opposition from the traders’ community. In a statement issued on Thursday, the Finance Division said that the government has not taken back the decision to collect taxes through electricity bills. It said that no decision has so far been taken by the government. However, talks have been held with traders and the business community on taxes on electricity bills.