The International Monetary Fund (IMF) has asked Pakistan to set a tax collection target for the next fiscal year of 7.25 trillion rupees, which would require an additional tax of around 300 billion rupees, including tax withdrawals. Agricultural tax credits will increase the burden on the wage category. .
The latest report from the International Monetary Fund in Pakistan says the exemptions should be removed to include fertilizers and tractors, which account for 23% of current GST spending and whose removal is a measure of the 2023 budget.
The Ministry of Finance plans for 9.5% inflation and 5.5% economic growth for the 2022-23 fiscal year, which could increase revenue collection to nearly 900 billion rupees in the next fiscal year without spending more.
The target is nearly 350 billion rupees higher than the tax authorities believe can be achieved without new taxes in the 2022-23 fiscal year.