- IMF has asked Pakistan to raise the standard GST rate from 18% to 19% in the 2026-27 budget, but Pakistani authorities are resisting due to inflation concerns.
- A 1% GST hike could generate roughly Rs250-300 billion in additional revenue, driven by weak tax collection performance.
- IMF also wants GST on hybrid vehicles raised from 8.5% to 18%, while EV-related discussions are still ongoing.
- For retailers, the IMF supports a fixed tax scheme for those with turnover up to Rs200 million, with limited audit requirements; talks on relief for salaried taxpayers are also continuing.
- The IMF may agree to cut Super Tax by 1.5% to 2%, while budget negotiations remain ongoing and FBR has denied any such proposal is under consideration.
Source: geo.tv
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.
Latest Posts in "Pakistan"
- Pakistan to Raise GST on Stationery to 18% in Finance Bill 2026
- Govt urged to reject IMF’s proposal to raise GST to 19%
- IMF Seeks GST Hike to 19pc Ahead of Budget 2026-27
- IMF Seeks 1% GST Hike to 19%, Pakistan Resists Over Inflation Fears
- IMF Pushes for 19% GST in Budget; Pakistan Resists Citing Inflation Fears
