- IMF rejected Pakistan’s proposed sales tax exemption on electric vehicles.
- IMF wants tax rates to remain in line with standard policies.
- IMF objected to tax concessions under Pakistan’s EV policy, including exemption on local sale of EV components.
- Pakistan’s Ministry of Industries and Production recommended the tax relief to boost EV adoption.
- IMF stressed that sales tax on raw materials for EVs should not be removed.
- Pakistan and IMF are negotiating climate financing, including electric vehicle charging stations and tariff adjustments.
- Pakistan aims to develop 3,000 charging stations by 2030.
- IMF delegation visited Islamabad to discuss climate financing strategies, including tracking mechanisms and green budgeting.
- Discussions included the proposed introduction of a carbon tax in the federal budget for the 2025-2026 fiscal year.
- IMF will give recommendations on the implementation and framework of the carbon tax.
- Negotiations cover EVs, subsidies, and enhancing green budget.
- IMF delegation’s visit aims to align Pakistan’s financial policies with global climate commitments, ensuring sustainable economic reforms.
Source: timesofoman.com
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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