IMF Recommends Broadening GST to 18% to Enhance Revenue Generation in Pakistan

• IMF recommends standardizing GST rate at 18% for a wide array of goods in Pakistan
• Proposal includes abolishing zero ratings under Fifth Schedule, except for exports, and limiting exemptions under Sixth Schedule
• Aim is to boost revenue generation by about Rs1,300 billion, equivalent to 1.3% of GDP
• Strategy also involves eliminating minimum taxes, surtaxes, and removing 9th and 10th Schedules
• Focus on streamlining tax framework and broadening tax base to enhance economic stability and growth in Pakistan

Source: profit.pakistantoday.com.pk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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